Not every small business needs a bookkeeper, but there comes a time when it is practical to consider hiring one. The expense is steep, but the return may be worth it. As a business owner, you wear a lot of hats. Sales, marketing, and customer retention likely rise to the top of your priority list. After all, no business exists without a leader paying close attention to the top line. However, the bottom line may suffer as your focus is constantly consumed with the daily, boring financial tasks of tracking expenses and balancing books. If you have doubts about whether to hire someone to help with accounting tasks, there are some telltale signs it is time to take that step.
Where Are Your Priorities?
You started your business because you had a vision. Undoubtedly, there are things you do really well, but it is difficult to manage every aspect of your business. By trying to be everything to everybody, there are certain aspects of your business that suffer. Perhaps you notice sales are flat from one year to the next. Is it the market? Or are you spreading yourself too thin? It is probably a good idea to get more involved with generating revenue and spend less effort on internal nuts and bolts. Even a part-time bookkeeper may help make that move possible.
Delegate Ordinary Tasks
You’re constantly on the move, traveling, visiting clients and prospects, and entertaining when possible. Throw in some other primary responsibilities and you wonder where the time goes. You might also wonder how much time is left to manage the amount of tax-deductible expenses you’ve accumulated. As the end of the quarter approaches, you’re left with a mountain of paper and digital receipts, all of which need to be tracked to offset business income. Will you find the time to do it? Is your time better spent in other areas? If you find yourself pondering these questions on a regular basis, consider enlisting some help.
Managing the financial side of your business has gotten easier. Instead of wading through piles of paper, software such as QuickBooks Online requires nothing more than a computer and internet connection to easily manage your company’s accounting functions. But is your specialty data entry? At the end of a long week, the last thing you may want to tackle is journal entries. You may tend to rush through the entries, doing it once and doing it inaccurately. Without a second set of eyes on your work or someone to solely focus on accounting, errors can lead to lost revenues and higher tax bills.
Customers are the lifeblood of your business and acquiring new ones is costlier than retaining the ones you have. While a customer generally tolerates an occasional error on an invoice, repeated mistakes might force the client to become frustrated and look elsewhere. When minor complaints turn into major losses in revenue, the time has come to open your books to a specialist.