We are continually asked by small business owners, “When do I need to hire a bookkeeper?” Here are some tell-tale signs that it’s time to outsource your bookkeeping.
1. Your Books Are Behind
Are you struggling to find the time to keep your books up-to-date? Are you 6+ months behind on your bookkeeping? Or even worse, is your tax accountant asking for your QuickBooks file and you’re embarrassed because you haven’t updated it since last year’s tax deadline? These are tell tales signs that it’s time to hire a bookkeeper. Not only does up-to-date bookkeeping help you get every tax deduction possible, but it’s also a valuable tool to running your business. Statistics show businesses that keep up with their bookkeeping on a monthly basis are more likely to succeed than their counterparts who only update their bookkeeping quarterly, or even worse annually. If you’re behind on your bookkeeping, it’s time to invest in your business and outsource your bookkeeping.
2. Your Invoices Have Not Been Sent Out
Cash is king. Failure to send out invoices will result in your clients not paying for your services. You work hard and deserve to be paid. The best time to invoice a customer is while you’re preforming your services or immediately after. During this time frame your customers are still feeling warm and fuzzy about your incredible product and are excited to pay for your services. However, the longer you wait to bill your clients, the longer you can expect to receive payment. This delay in payment will most likely have a negative impact on your company’s cash flow. If you don’t have time to invoice your customers, it’s time to hire a bookkeeper.
3. Bookkeeping Pulls You Away From Revenue Generating Activities
Small business owners wear many hats. In the beginning, these hats play a vital role in learning all aspects of your business. However, as your business grows, your time becomes more and more valuable. These various hats you wear can make or break your business. As your business grows, your time is better spent focused on the revenue generating aspects of your business. Let’s say your time is worth $150/hour. When you spend your afternoon working on bookkeeping, you’re throwing $150/hour out your window! Why not hire a bookkeeper at $65/hour to take over your bookkeeping tasks. Outsourcing your bookkeeping will free up your valuable time and allow you to focus on revenue generating activities. The best part, you still come out ahead!
4. Your Investors Expect Professional Reports
Are you investors not impressed with your napkin drawings of your business finances? Have you outgrown the ability to submit bank statements to your lenders? It’s time to hire an accountant who can prepare the necessary reports to satisfy your loan reporting requirements. Our outsourced controllers can help prepare beautiful and professional financial reports, forecasts, budgets, and cash flow models. Not only will these reports satisfy your lender’s requirements, but they will also help you as the business owner make informed decisions about your business. It’s a double win, let’s get started today!
5. Sales are Increasing, but Your Profit Isn’t
How can this be? Your sales team has been rocking it the past few months and generating higher sales figures than ever before. However, when you look at your profit & loss statement, it shows that your profits remain the same. Why?? An experienced accountant can help analyze your financial statements and figure out what’s causing this. Perhaps there are areas where you can cut costs. Or maybe one of your top product lines has a higher cost of sales, resulting in lower than expected profits. There are a handful of reasons higher sales do not result in higher profits. Let our outsourced accountants dig deep into your financials and help you understand what’s going on with your business.
6. Record Breaking Profits, but Cash Flow is Still Tight
Wondering why cash flow can be tight, even though your profits are up? It’s time to bring in your accounting team to help analyze your financials and figure out what is going on with your cash flow. Cash flow is a funny beast. Just because your business is reporting a profit, doesn’t always mean that you will be cash flow positive. Growth can wreak havoc on your company’s cash flow. Our well-trained CPA’s and controllers can help determine the reasons for your business’ tight cash flow and can recommend suggestions to help remedy your cash flow crisis. Our accountants can also help you create a cash flow forecast, to help your management team have a better handle of cash.
If your small business is experiencing any of signs listed above, it’s time to hire an outsourced bookkeeper. Not only will you gain back valuable time, but outsourcing your bookkeeping will result in you having access to vital financial data to help you and your management team make informed business decisions. What are you waiting for? Call us today and learn how the bookkeeping experts at Trailhead Accounting Solutions can help you get your accounting under control.
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