According to a study, nearly 82 percent of small businesses fail as a result of poor bookkeeping and cash flow problems.
Owning and operating a business is challenging enough without throwing DIY accounting into the mix. In order to truly assess your company’s financial situation, you will need to use a trusted bookkeeping company. Finding a reputable and experienced bookkeeper will require you to do a great deal of research.
Read below to find out about some of the signs you may notice when it is time to hire an experienced bookkeeper.
1. Bookkeeping Is Prohibiting You from Engaging with New Clients
The lifeblood of any business is increasing the number of clients they have. Going out and doing a few sales calls is a great way to connect with prospective clients. If you are spending all of your time keeping up with the financial side of your company, it will prohibit you from growing.
Rather than letting DIY bookkeeping attempts derail your ability to expand your reach, you need to hire a professional to help you out. Allowing a professional bookkeeper to do this work is the best way to ensure no costly mistakes are made.
2. You Aren’t Keeping Up-to-Date Records of Business Transactions
The more your business grows, the harder it will become to keep track of paperwork and recordingkeeping. For the most part, business owners don’t have a lot of extra time. Instead of burning the candle at both ends and allowing your bookkeeping to suffer as a result, you should reach out for some professional help.
Failing to keep current financial records can get you in a lot of trouble with the Internal Revenue Service. Rather than putting your business in jeopardy due to an attempt to save a few dollars, hiring a professional bookkeeper is a fantastic idea.
3. Tax Compliance Issues Are Getting Too Complicated
One of the main concerns you should have as a business owner is complying with tax regulations. Without a focus on staying compliant, you run the risk of being audited by the IRS. If you are confused about what you need to do to comply with the federal and state business tax code, you definitely need the help of a professional bookkeeper.
A qualified bookkeeper will usually attend training sessions to keep their knowledge of tax codes and laws proficient. This means you will not have to worry about throwing up any red flags when allowing them to handle your tax paperwork.
4. Time to Delegate
While a growing business is a good thing, it can also be a bit overwhelming at times. Some business owners try to handle every aspect of running their company and get burnt out as a result. Saving money is a great thing, but you need to realize what a great investment hiring a bookkeeper is.
The money you pay these professionals will be worth it considering the help they can provide. When you consider the cost of things like tax penalties, paying a bookkeeper is a great deal.
Before hiring a bookkeeper, be sure to check out their level of experience. Ideally, you will want to hire professionals who have a proven track record of excellence in this industry.
