What are the main signs that you are losing from not hiring a professional bookkeeper for your business? Find out below:
You are wasting too much time on your bookkeeping – supposing that you are good at keeping the financial records and that your business is not too large, there is a good chance that you are personally recording financial transactions. This may be manually or with some of the new bookkeeping software. Either way, you need to understand whether you are spending too much time on bookkeeping. The best way to ascertain yourself of this is to consider yourself as a salaried employee: count the number of hours you spend on bookkeeping, find your salary by calculating it against the average hourly rate for bookkeepers, and compare your supposed salary to that of a professional bookkeeper. If you are earning more than a professional, then yes, you are spending too much time keeping track of the books (and you need a bookkeeper).
Your books are not up to date – if your books are not updated regularly, and you find yourself with only receipts and statements by the time your tax agent is filing your taxes rightfully, then this is a good indicator that you cannot keep track of your financial records by yourself. Being a few months behind bookkeeping is the easiest way to gauge your need for a bookkeeper; if you have hired a freelancer, on the other hand, you can decide whether you need a permanent bookkeeper for the business if he or she cannot keep up with the records either.
Your accountants are doing the bookkeeping for you – if at the end of the year you find that these employees are left with making the records for you, then this is a dead giveaway that you are in a need of a bookkeeper. From exchanging way too many emails with them, to asking them financial questions that are arguably beyond their field of work, there are enough signs that tell you of the need to hire a professional. Among them, the single, best reason to motivate you to do so is the fact that these professionals charge more than a bookkeeper does: you can save money by hiring a bookkeeper instead.
You do not have an idea of the status of your business – and finally, if you cannot grasp the health of your business, then this means that you need a bookkeeper. You can find yourself coming up short every time when paying your freelancers and short-term employees; or you can find your profits not rising when your sales do. Whichever it is, the reason is clear: your bookkeeping does not match the current status of the business, and therefore, you cannot make financial decisions that fit its current status.