Everyone likes to handle the critical areas of their business on their own, especially with financial management and record-keeping. Sometimes these responsibilities take up so much of your time that it gets the best of you. Fortunately, you can transfer all that stress to someone who offers bookkeeping services and focus on growing your business or take some time off.
The benefit of outsourcing your bookkeeping needs is that you don’t have to go through the hassle of hiring someone full-time, manage payroll, grant holiday pay, and above all, you won’t have an in-house employee who knows the intricate financial details of your business, which by the way, may not result in a healthy work environment.
When Should Your Business Need Bookkeeping Services?
As the CEO of a startup or a small business, you will only have a few tasks in the beginning, but as your company grows, you need to allocate more time for your clients rather than manage the tedious process of bookkeeping.
5 Signs your Startup or Small Business needs Bookkeeping Services
Your Business Is Scaling Too Fast
As your business grows, the revenue you generate invites a lot of paperwork. As a small business owner, you might be wearing too many hats at the same time, and the last thing you want to do is worry about balancing the ledger, track your cash inflows and outflows and follow up on unpaid invoices.
According to a 2019 survey on small businesses conducted by CNBC and SurveyMonkey, 52% of small business owners think that finding a qualified candidate is a tough task. But once you find them, they will have to go through a period of training and adjustment before they can be a valuable asset to your business—something that you don’t have to worry about when you outsource your bookkeeping needs.
You Can’t Focus on the Key Areas of Your Business
Clients take up so much of the time of a small business owner, so do marketing, strategy, and planning. As your business expands, so do your roles inside the company. It’s when you are updating your accounts payable and accounts receivable that the thought of your meeting with a potential client comes into your mind.
Now you have to rush through the process only to find that the ledger is not balanced. It won’t be a pretty sight during the tax season, and then you would be thinking about hiring a bookkeeper. You can be present in the areas you are most required and let your bookkeeper worry about the tax season.
You Failed to Maximize Your Tax Deductions
Are you aware of all the eligible tax deductibles for your business? Even if you don’t, that’s completely alright. Not everyone is an expert in all the fields. The basic requirements for running a business that includes office supplies, salaries, office rent, travel and lodging, telephone bills, digital downloads, and accounting services are tax-deductible.
It’s a bookkeeper’s job to be aware of the scope of tax deductions for your company. Your bookkeeper will also be informed about the latest reforms and amendments in the laws and regulations pertaining to income tax.
Your Books Are Outdated and Unorganized
The long hours of work and stress probably don’t allow you to organize your financial records properly. Maybe you have documents of your expenses in your file cabinet, your income details on your computer, and the overdue invoice slips in your drawer. Not only is it a daunting task to organize them, but your books are probably outdated because you don’t have the data you need at your fingertips.
Usually, it takes the tax season to motivate you to unearth all the hidden documents. The last-minute hastening will only result in more errors to creep into your books. Having unorganized books also doesn’t assist you in making informed business decisions.
You Need to Take Some Time Off
Nothing takes a toll on one’s health than running a business. For small business owners and entrepreneurs who hold multiple responsibilities, the stress is too high. That’s the reason managing financial documents always comes last on the to-do list; in fact, it should be one of the most important factors a business should take care of immediately.
When you have a bookkeeper at your services, now most of them providing online bookkeeping services, you can relax and take a break from your stressful years of building your business while feeling certain that your financial documents are up to date and organized.
Outsourced bookkeeping services offer a lot of benefits for your business and your personal life. Since cloud computing became popular, many remote bookkeeping services started maintaining a secure online platform where business owners can access their financial documents whenever they need them.
It’s about time you consider having a bookkeeper for your business for that much-needed organization and relief from your daily work pressure.