Bookkeeping is a fact of life for every small business owner. Whether you’re the type that is diligent about entering every receipt into the proper categories and reconciling at the end of the month, so you can print off accurate statements and track every penny. Or if you’re the one that throws all of your receipts into a box and takes care of it at the end of the year. Bookkeeping has to happen so your taxes can be filed. With your business growing, you’re probably asking yourself, is it time to hire a bookkeeper?
The internet loves lists to discover what they’re missing in life, so here are 5 signs it’s time to hire a bookkeeper:
#1. That stack of receipts seems to be growing despite your best efforts to neglect it and let it die.
In many cases, ignoring something leads to its eventual death (the house plants or the leftovers in the fridge for example). With piles of paper, this isn’t how it works. Old receipts and unpaid invoices thrive on neglect. And if you try to throw them away, they will only come back to haunt you in the form of CPA calls and emails (or worse – the IRS). If you see your receipt pile growing, it’s time to get help – fast.
#2. The days are getting shorter.
If only there was one more day in the week, right? Owning a small business takes a lot of time. We all know it. As your company grows, your time begins to shift from running the business you love, to sitting at a desk getting frustrated by staring at numbers all of the time. You may even feel like you’re losing some of the passion you once had. Having someone to help take on the monotony of bookkeeping frees you up to focus on the things you want to be doing.
#3. 2 + 2 = 31
Wait…what?! You have been diligent about entering your receipts. You know you haven’t missed anything. But here you are, sitting in front of your computer, thinking, “Why won’t these @!#%ing numbers add up properly?!” You may be tempted the throw your computer at this point, but you don’t because you’d have to pay to replace it. If you’re not naturally good with numbers or if you simply don’t like staring at a computer for longs periods of time, bookkeeping is easily the worst part of owning a business. You should get a bookkeeper.
If you’ve done payroll, you know the struggle. No matter how busy you are, you have to make time in your week for this. And if you realize you made a mistake after paychecks went out, you had better have a good blood-pressure medication nearby, because you’re going to need it. To sum up: if you have anyone (besides yourself) who gets a paycheck, hire a bookkeeper.
#5. Your business is thriving, but your bank account is empty.
You know your company is making money, but your bank account is empty. This is another “bang your head on a desk and cry” situation. Cash flow problems are very common and are easily remedied by following a few good bookkeeping practices. It might seem counter-intuitive to hire someone when you don’t have money, but you should at least have a professional bookkeeper take a look at your books to find out if they can help.
There are a lot more reasons to hire a good bookkeeper. We’ve only narrowed it down to 5 to highlight a few potential pain-points. If you know you need some help with your bookkeeping, but aren’t sure what the best course of action is, give Balanced Sheats a call or send us a message. We’re happy to partner with your business and get you on the right track.