You have downloaded all the templates and paid for accounting software, but your business just keeps growing. You can only get away with do-it-yourself bookkeeping for so long. Despite all your good intentions, there comes a point when you will start to feel overwhelmed and need to hire a professional bookkeeper. Here are some tell-tale signs that your business needs a skilled professional:
1. It’s not worth your time anymore
Time is a valuable asset, spend less of it on your books and more of it on your business objectives. The cost of a bookkeeper only averages about $20-70 an hour. Most small business owners have to fill all the positions in their company initially. You do all the work and that ends up averaging out to over 60 hours per week! Especially as your business grows, hiring a professional gives you more time to concentrate on the things that are more important to you and ends up being cheaper than you doing the work.
2. You can’t keep your books up to date
It’s quite astonishing to learn how much time you will spend preparing your taxes and books each year as a small business owner. According to a study done by the National Small Business Association, you will spend over 100 hours on just Federal taxes alone. It’s no wonder you can’t seem to keep up with your bookkeeping! That doesn’t even include state taxes, invoicing, paying bills, and other accounting needs that you are also obligated to complete throughout the year.
3. Tax season is a nightmare
Are you calling your accountant constantly and frantically searching for all those lost receipts come tax season? Relying too much on your accountant can be much more costly than just hiring a bookkeeper. You’re looking at $150+ to have your accountant do the same job as your bookkeeper. That’s over $100 difference you can save, per hour! It’s much more convenient and cheaper to simply hand over all the paperwork your bookkeeper has prepared so that minimal hours are spent on accounting at the end of the year.
4. You don’t know what you’re doing
Did you know you can get deductions for almost anything you use for your small business? Including utilities, rent, contractors, repairs, and equipment. Small business owners may miss out on taking advantage of all these deductions if they don’t have the knowledge that a professional bookkeeper does. Another common concern, that many businesses tend to run into, is managing compliance issues. There are many, many rules and regulations regarding bookkeeping and tax preparation that can be very complicated. Forms must be filled out perfectly and even from state to state different standards exist. It’s difficult to keep up with everything and it’s ok to get help with something that is tedious and cumbersome for you.
5. Profits haven’t increased
Who wouldn’t love a profit boost? You are getting new client requests every day, you seem to be popular on social media, your sales are up, but your profits aren’t moving. What gives? This could be a good time to bring in an expert. Studies have shown that businesses who hire bookkeepers enjoy a 16% increase in profits. Having a specialist, with in-depth knowledge of your bookkeeping numbers, allows you to make better short and long-term business decisions. You can clearly see where you are thriving and where you need to buckle down.
Even if you feel that you may not be able to afford a full-time bookkeeper, it’s not uncommon for small businesses to employ someone on a quarterly basis to relieve some of the burdens. The bottom line is employing a professional bookkeeper will greatly increase your productivity and your profits. You will eliminate the stress of doing it yourself and be able to more closely focus on your business goals, all while maintaining accurate and compliant financial records.