1. Your Business is Experiencing Rapid Growth
Every business owner dreams of expanding and increasing their revenue. But while making more money and growing the business is great, it also means hiring more staff, serving more clients, partnering with additional suppliers, and purchasing more equipment and inventory. This all translates into a lot more numbers to juggle, which can quickly overload your plate.
As you take on more personnel and sub-contractors, your business also becomes subject to additional regulations. Adding a bookkeeping service makes it easier to ensure that your business stays compliant with current laws. Professional bookkeepers are up-to-date with regulations affecting businesses, and can keep you informed of your obligations.
2. Your Customers Are Behind on Paying Invoices
Many small businesses face this struggle: chasing down customers who are late paying off their invoices. Many clients will postpone payments because they have a shortage of available cash, or sometimes they just aren’t keeping up with their financial obligations.
Like most business owners, you simply do not have the time to run around and keep tabs on who’s paid and who hasn’t. Not only that, but it’s a good idea to separate customer relations and debt collection. This not only helps save you time and effort, it also helps keep your relationship with your clients on a positive note while you leave the invoicing and payments to a separate department.
A bookkeeper will make sure that your clients are paying on time so that you don’t run short on cash.
3. Investors Expect Detailed Financial Reports
If you have investors associated with your business, they’ll likely expect regular financial reports from you in order to ensure their investments are being handled well.
Bookkeepers can create in-depth, accurate financial reports that will keep your investors satisfied, while allowing you to stick to the business at hand. And when it comes time to ask for a loan from an outside investor, having a report such as this will come in handy.
4. You’re Not Seeing an Increase in Profits, Despite a Boost in Sales
Just because your business is selling more than ever before doesn’t automatically mean that your profits will necessarily increase. If this is the case, perhaps your overhead costs are through the roof and need to be reduced.
An experienced bookkeeper can look at your business in depth, identify areas where you’re spending more than necessary, and make recommendations about where you can effectively cut costs without reducing profits.
5. You’re Not Separating Your Personal Credit From Business Expenses
Many small business owners tend to pay for business expenses out of their own pocket, or with their personal credit card. Doing so can make it nearly impossible to track business costs, and differentiate between what’s personal and what’s related to the company. Without a proper paper trail to track these expenses, confusion can ensue. Hiring a bookkeeper can alleviate this issue.
High volumes of expenses can be effectively managed by a professional bookkeeper who can organize your finances and simplify expense tracking for you and your employees. This can save you hours of sifting through receipts and credit card statements at the end of the month. A bookkeeper will ensure that your financials are accurate, and that nothing falls through the cracks.
The Bottom Line
Considering the money that your business can save from minimizing unnecessary costs and taking advantage of tax savings, there’s nothing to lose by bringing a bookkeeper on board. Save yourself the financial mess and invest in a professional bookkeeping service instead.