Are you contemplating whether to engage a virtual bookkeeper and is it the right time? Some small business owners delight in doing things on their own. This resourcefulness comes in handy when launching your company since it allows you to keep costs down and run a lean operation.
But as your company expands, so does your to-do list. A DIY strategy becomes unsustainable when there are so many activities to complete and little time in the day. This unreliability is most apparent when it comes to DIY bookkeeping.
Many small-business entrepreneurs start by doing a lot of the work to reduce expenses. They are driven, aspirational, and enjoy “controlling a tight ship.” But here are some warning signs that you need some professional help:
Standard warnings you need a virtual bookkeeper
Check out these signs which indicate that you need a virtual bookkeeper for your business –
Your books are never up to date
Have you had a stack of documents that includes a shoebox full of untraceable receipts, payments you have not reconciled, and unassigned revenue and expenses? While managing your books can be complicated there are a number of other factors if your books and records are out of date.
Perhaps it’s a result of segregated systems that don’t communicate with one another, requiring a lot of human tracking that inevitably results in data entry mistakes. You understand what I’m talking about if you bill your clients using one tool, keep track of spending in another, and track your time in yet another.
The issue with out-of-date books is that it is difficult to have a solid grasp on your finances. It becomes challenging to track and manage your cash flow. Assessing your company’s financial situation is much more difficult.
By keeping track of daily transactions, a virtual bookkeeper can help you improve your understanding of your financial status.
Your cash flow is unpredictable.
Have you ever run out of money at the end of a month and couldn’t pay your bills?
The primary line is that your spending has exceeded your revenue. However, there could be other causes including significant unplanned expenses, and late client payments. You currently have a cash flow issue.
To ensure you are always aware of your cash flow, bookkeepers keep track of your accounts payable and receivable and help you follow up on past-due invoices. They can prepare cash flow statements with the correct bookkeeping software, allowing you to precisely track the amount of money coming in and going out of your company over time.
Your confidence in your bookkeeping abilities is low
If you create websites, write copy, or take stunning photos, you might be an expert in your craft. You cannot, however, be an expert in every area.
Hire a bookkeeper for peace of mind if you are unsure whether you’re handling your books correctly. Perhaps you worry that you’re consistently missing out on tax deductions.
You are being distracted by bookkeeping and unable to focus on growth
If you do your bookkeeping, you can abstain from activities that will advance your company. These encompass activities that affect your revenue, such as client work and marketing.
Of course, if you have only ever handled your bookkeeping, you might not even be aware that you are leaving these crucial areas. So, think about time tracking to understand better how much time you spend on bookkeeping. Then consider what key company areas you could concentrate on if you hired a bookkeeper to free up that time.
You missed Tax Deductions.
Digital downloads, phone bills, and online subscriptions are just a few company expenses that qualify for tax deductions. These deductions can offset significant portion of your business income and lower the taxes due.
But since you did not track them, you most certainly missed a few tax deductions throughout the years. It is also simple to overlook obvious tax write-offs when rushing to update your accounts at the last minute.
Fortunately, bookkeepers accurately record transactions and categorize expenses to lower your overall tax burden. They may even point out tax-deductible business expenses you were unaware of.
You lack time to do everything.
A growing business entails increased customers, significant billing volumes, and back-office paperwork. And when your operations firm expands, this to-do list simply becomes longer and longer.
If you don’t have enough time in the day to do everything, reorder your priorities and pay attention to what matters most to your company. You might find that outsourcing duties like bookkeeping give you more time to complete all your work.
You think you need a break from the monotony.
Are you worn out and overworked? Does the laborious chore of keeping your books up-to-date sap your creativity and negatively impact your work?
If this describes you, think about outsourcing your bookkeeping to free up your time and thoughts so that you can rediscover your enthusiasm for the task and your motivation for starting your company.
You might take great satisfaction in your DIY approach as a small business owner. Why wouldn’t you? When you first started your business, it served you well. Many small business owners decide to complete their books by themselves.
However, when the company expands, this do-it-yourself bookkeeping strategy is ineffective. New duties and a long list of tasks are brought on by expansion. Engaging a bookkeeper will become necessary at some point. There were a few signs in this post indicating you may have reached that point.
Have you arrived at that stage yet? If yes, then do connect with us at Bronte Bay. We can assist you with that to make things better! You may compare our pricing packages at BronteBay in minutes. We offer webinars and one-on-one advisory meetings to suit every business. We can show you the ropes in the right direction. Start with our 30-day free trial to see how you can save!