Are you filing tax returns consistently late or needing help keeping track of payments owed? Is your cash flow unpredictable? These issues and problems can be major warning signs that you need a bookkeeper for your business. Most business owners find bookkeeping a daunting and time-consuming task. Yet, taking control of your business financials is vital for ensuring your business continues to grow. By recognizing the common signs you need a bookkeeper, you can take steps to get your bookkeeping back on track.
4 Top Warning Signs You Need a Bookkeeper
With bookkeeping being such a key part of any small or medium-sized business, there can be a lot of reasons why you need a bookkeeper. The following are some of the four most common signs you need a bookkeeper for your business:
- You need more time for core business tasks: According to a survey, the most hated tasks for most business owners were bookkeeping and handling finances. Each year, 240 days are spent on administrative tasks by small businesses, as per a Sage study. The “administrative burden” of handling payroll, accounting, processing invoices received, tracking payments owed, and tax-related tasks contribute to small business inefficiency. If you spend a large part of the day or week managing your financials and recording transactions or inventory, it is a clear sign you need a bookkeeper for your business.
- Your cash flow is unpredictable: Are you unable to meet your expenses due to a lack of cash? Cash flow problems hamper your short-term plans and are the major reasons behind small business failures. While the reasons for unpredictable cash flow can be multiple, late payments, unforeseen expenses, and overdue invoices are often the root cause. When you are not keeping track of all transactions, you may be spending money even before receiving it. As such, this is one of the important signs you need a bookkeeper. Bookkeepers can handle your transaction processing services and account reconciliation services, including accounts receivable and accounts payable, to ensure your cash flow is predictable and manageable. With cash flow statements and monthly reports, it is easy to know exactly how much cash flows out or in at any given time.
- Tax and regulatory compliance is getting more complex: Do you frequently underpay your taxes or miss deadlines? While compliance with government regulations is important, adhering to these can be time-consuming and complex. Small business owners name administrative complexity as the key challenge when handling federal, income, and payroll taxes. With proper tax bookkeeping, you can enter these details into the appropriate expense categories to help you accurately estimate your taxes and file them on time. They will also help you identify tax-deductible expenses.
- You are not receiving payments due: One of the sure signs you need a bookkeeper is that you are not receiving payments owed to you on time, or worse, you cannot keep track of accounts receivable. The longer the time to chase your clients for money owed, the higher the risk that it becomes a bad debt you may have to write off. Over time, this can seriously impact your profit margins and the bottom line. If you have a bundle of untracked receipts and cannot track payments owed, it is time to hire an experienced bookkeeper. The bookkeeper records the accounts receivables to help you streamline your cash flow.
Contact Us to Get Started Working with Bookkeeping Professionals
At Bookkeeping For You, we specialize in handling all the cumbersome tasks of recording business financials. This means you get the time you need to focus on strategic business projects that help you achieve your growth goals. If you recognize any of these signs that you need a bookkeeper, contact us today to learn more about how our tailored small-business bookkeeping services can help you take your business to the next level of success.