As a small business owner, there are many things to do and watch. And, there are many reasons why small businesses do poorly or fail — and one key reason is poor accounting. Flying blindly without up-to-date books is a recipe for business disaster.
Here are ten signs your company needs professional bookkeeping services now.
1. You’ve never kept a set of books
For someone who’s built the business from the start, it’s no surprise that most entrepreneurs prefer to do things for themselves. Sometimes it’s just in their nature or an attempt to save money. If you’ve never done bookkeeping before, this isn’t the most effective or efficient use of your time. Trying to do so while also juggling the many tasks involved in running a business, will end up costing you more money than it saves.
Do you need the stress?
2. You see software as a substitute for professional accounting
Today’s software sounds so easy to use, yet it can send you on a wild goose chase finding the never ending technical details. But having tools is sometimes thought as a replacement for the knowledge and insights of how to do things right. Without a full understanding of the intricacies of accounting, you run the risk simply magnifying errors and automating bad habit.
Do you have the software and technical expertise and patience to tasks correctly?
3. Your company lacks an accounting foundation
The state and structure of your company’s finances aligns the efficiency and performance of the entire company at every level. You can’t successfully control or scale a business whose measurements are left to manage themselves. A solid accounting foundation is key to driving productivity and yielding potential growth.
Are you up-to-date with your accounting and bookkeeping experience?
4. Your bills occasionally get paid late
When you lack the time or discipline necessary to keep your accounts up to date, bill payments can fall through the cracks, and you’ll be short the money to pay them when due. Proper accounting practices require a disciplined management cadence. When you take advantage of professional bookkeeping services, stress will decrease, and your time can be shifted to focus on growth.
Are you paying bills on time?
5. Your customer payments aren’t collected on-time
When customer payment collections are behind, cashflow is strained. It is important to balance the income with expenditures. Getting professional help to set up a well-organized bookkeeping system is crucial for keeping cashflow positive – and addressing one-time needs, changes or expansion.
Are you collecting cash as quickly as you should?
6. Your bookkeeping records are incomplete or an after-thought
Record-keeping is a vital part of every organization’s accounting activities. Without logging and maintaining necessary accounting records, you run risks with cashflow and the IRS. Hiring an experiences bookkeeping firm will streamline your financial processes. You will also avoid missed deadlines for government remittances and penalties for incorrect – or incomplete – tax returns.
Are your books up-to-date?
7. Payroll calculations and employee deductions are foreign concepts
Payroll can be a complicated and stressful undertaking, especially since your company is required by the government to pay its employees correctly and on time at each pay period. Payroll calculations change on a regular basis. Outsourcing your bookkeeping gives you the opportunity to shift the task of staying current on employee payroll deduction rules to an outside professional.
Are you keeping up with payroll requirements?
8. You’re not tracking all the tax deductions available to you
Without the services of a bookkeeping expert, you may be missing out on tax credits and deductions your business is entitled to claim. Many companies find that tracking annual tax deductions more than pays for the expense of hiring a bookkeeping firm to handle their finances.
Are your deductions tracked carefully throughout the year?
9. You don’t have time to focus on growing your business
Even if bookkeeping comes easily to you, time you spend managing your finances is time you could be spending developing new business opportunities, getting closer to customers or driving future growth. Hiring a bookkeeping service can free up the time you need to focus on what you do best – leading and operating your company.
Where are you focusing your time and energy?
10. You’re not making as much money as planned
To increase your profit, hire a local and professional bookkeeping service. You’ll increasing your company’s efficiency and tax benefits, reduce fees, penalties and stress, and re-gain the time you need to get your business to the next level of success.
Does your bookkeeper also help your with business management?
You many want to hire a a local, experienced bookkeeper to help you.
Focus on what you do best
YourBizManager can help! You can start the process by sending us an e-mail to info@YourBizManager.com or by texting or calling 424-246-6006.
Receive a FREE consultation and 50% off
Click here or contact us to receive your free consultation and 50% off your first four (4) hours of service. Just mention this post.
About Doris Cristiano & YourBizManager
As an independent bookkeeper, Doris Cristiano has been providing flexible business services on the west-side of Los Angeles since 1997. To support business needs and growth, YourBizManager tailors its services to each unique situation and works closely with its Clients’ at their business or home office. More About Us
