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5 Signs It's Time to Hire a Bookkeeper

Tue, 06/03/2014 - 2:03pm | by Guest Contributor

The entrepreneurial spirit offers unlimited opportunities to the ambitious, but the overly ambitious often pay a dear price for their drive to succeed. Trying to manage all aspects of a small business is a difficult thing to do. Remember these 5 signs that it may be time to hire a bookkeeper, and help keep your business on the right track.

  1. Your Business is Growing- As your business evolves from an ambitious start up to a profitable company, you will need to start thinking seriously about how the books are going to be handled. In the early days it is often sufficient to keep accounts of and expenses, revenues, and daily transactions on your own, but as your business grows you will benefit from bringing in professional help to keep the books in order. As your profits increase, so will the complexity of your business.

  2. Accounting Software Isn't Enough- Many small business owners use accounting software for bookkeeping, but as robust as these programs are, they can only do so much. If you find yourself struggling with your accounting software, the only things that can come about if you continue to handle your business's finances alone are mistakes. Most accounting software is relatively user friendly, but if you lack the experience in financial matters to make good use of it, even the best software will never be enough.

  3. You Can't Keep Up- Owning and operating a business is no small task. There are several jobs you will need to handle as a business owner including management, customer service, promotions, image development and all aspects of day to day operations. Bookkeeping takes time, and it will take you away from other tasks that are essential to the health and growth of your business. When you try to take on the job of bookkeeping it will be difficult to keep up, and you may decide that you need to focus your energy on other things. Hiring a bookkeeper is a great way to reduce your stress and workload so that you can stay on top of other business affairs.

  4. Your Business is Losing Money- Do you feel like the amount of money that your business is spending doesn't quite match up with the amount of money it's bringing in? This is a common problem for small business owners. Expenses are difficult to track, especially when you have so many other things to worry about. If you feel like your business is losing money, it's time to bring in a professional bookkeeper. This will expose hidden expenses, show you where you can save money, and maximize the potential profits of your business.

  5. Failure to Organize- One of the most important things in all aspects of business is organization. When business owners fail to organize, things quickly fall apart. Consider hiring professional bookkeepers and accountants when contracting new clients to keep everything in order. Organized finances will not only help your business stay healthy throughout the year, but also help you avoid endless headaches when tax season rolls around.

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