Knowing when to hire a bookkeeper is one of the most difficult decisions facing entrepreneurs, but the benefits of one are pretty well-known. Bookkeepers handle the financial aspects of running a business like keeping client transaction records, sending and tracking invoices, and ensuring taxes or professional fees and bills are paid when due. Although these tasks are tempting to do yourself, when is the right time to hire a professional? Keep reading for the top reasons why hiring a bookkeeper makes sense.
1. You Want to Actually Relax on Weekends
Do you find yourself spending weekends and vacations with QuickBooks instead of your family? Entrepreneurs who have a DIY philosophy typically sacrifice personal time to catch up on administrative tasks like bookkeeping. Hiring a bookkeeper will pay for itself in terms of freeing up valuable time to dedicate to more fruitful pursuits, such as spending time with loved ones. If you decide to work instead of play, the time is better spent finding new customers instead of performing tasks that can be easily outsourced.
2. You Pay Late Penalties Often
There are various types of taxes all businesses must file periodically. Although filing is generally easy, a missed deadline can result in comparatively hefty penalties. According to the IRS, around 47% of penalties they collect are due to delinquent filing. That money would be better spent on marketing to grow your business. Hiring a bookkeeper removes multiple “To Do” items from your already busy list, avoiding financial loss due to penalties.
3. You Need Help With Invoicing
If you find yourself sending late invoices and sometimes forget to send them at all, you need a bookkeeper. You can’t get paid if invoices are not sent, but often the paperwork and tracking involved is easily put off. Even worse is tracking them after sending them and collecting on late payments or unpaid balances. In fact, about 80% of payment delays are caused by incorrect invoices. A bookkeeper can make sure to send invoices immediately and can note payments or follow up with customers who are late. Accurate and timely billing is the only way to ensure your business has the revenue to grow.
4. You Can Finally Qualify for Financing
If the possibility of applying for financing is in the horizon, it makes sense to hire a bookkeeper now to get your books in order. Loan applications typically require extensive records of your company finances covering several months. Thorough and accurate financial statements are a necessary component of proving your business is an acceptable risk. The last thing you want is to be denied financing due to haphazard record-keeping. Having an accurate financial picture of your business will also enable you to spot when you might need additional capital, as well as how much capital you need.
5. You Can’t Track Client Expenses Accurately
Are you finding it hard to track your customers’ sales or expenses? Missing a single line item is not only bad business due to loss of income, but can come across as incompetent or amateur if the client discovers it. Even worse is the possibility of mixing up customer transactions. At the very least, inaccurate record-keeping provides an incomplete view of your overall business financial profile.
The decision to hire a bookkeeper is one that entrepreneurs often hesitate over, but it is rarely a decision they regret. A bookkeeper is an important element in growing your business and will prove to be a wise investment. When hiring a bookkeeper, make sure to hire one that will be fully invested in your company and focused on your success. Good bookkeeping is not merely crunching numbers and should include identifying patterns in your business finances with a growth-centered approach.
Are you considering finally hiring a bookkeeper to get your finances in shape? Call us today to discuss how Fusion CPA can save you time, energy, and money through our bookkeeping services.
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