When to Consider Employing a bookkeeper

Nov 3

Managing your financial records tends to be simpler during the initial stages of your business, especially when the number of transactions remains relatively low, making it manageable for a while.

However, how can you recognize the indications that it’s time to enlist the services of a professional bookkeeper?

If any of the following conditions apply to your situation, it’s advisable to consider hiring someone to take charge of your bookkeeping requirements:

1. The time you spend managing your books increases as your business grows.

2. Your financial records have fallen behind, resulting in unclear profit margins, cash flow, and expenses.

3. Absence of an accurate financial overview hampers your ability to make informed high-level business decisions.

4. Preparing your income taxes takes longer due to outdated records. If these challenges resonate with your current situation and you find yourself losing valuable time each month, it is a suitable time to bring a bookkeeper on board.

Seeking Assistance for Your Bookkeeping Needs

Fortunately, there are options available to address your bookkeeping backlog.

Here are some viable choices to consider if you’re contemplating getting assistance:

1. DIY Accounting Software: If you intend to manage your own bookkeeping, utilizing DIY accounting software is likely your best option. Most accounting software tools are designed to help you organize and track income and expenses, as well as generate financial statements. However, learning to use this software can be time-consuming, and without expert oversight, errors in data entry can lead to complications down the road.

2. Accounting Services: Larger companies often hire accountants, particularly CPAs, for strategic business planning, financial forecasting, decision-making, and tax-related matters. However, if your primary need is bookkeeping support, an accounting firm may not be the most suitable choice. Bookkeepers typically handle administrative tasks, while accountants offer specialized strategic guidance. While accountants can manage your books, their expertise often comes with a substantial fee, which may be beyond the budget of most small businesses.