No matter how large or small your company is, it is vital to manage its financial transactions. While managing your business’s income and expenses on your own may sound easy, some business owners make the mistake of thinking they can get away with do-it-yourself bookkeeping for the foreseeable future. The entire process can become complex as your company continues to grow.
While hiring an in-house team sounds like an excellent idea, it can be rather expensive. As your business starts to grow you may consider looking towards a more sustainable solution — hiring a bookkeeper.
Signs You Need a Bookkeeper
Here is a comprehensive look at what to expect from a reliable and qualified bookkeeper and signs that it’s time to hire a bookkeeper.
1. You Spend a Lot of Time Doing Your Own Bookkeeping
It can be rather time-consuming to handle all the bookkeeping needs of your growing business. If you find yourself staying up late to balance your books or it takes away from other priorities in your business, it may be time to bring in support.
2. Your Books Are Not Up-to-Date
Many small businesses tend to fall behind when there is nobody taking care of the books. You risk unclear margins, collections trouble, and unpredictable cash flows without updated books. When hiring a bookkeeper, they will take on the responsibility of managing deadlines and generate important statements that are necessary to keep your finances in order.
3. It is Becoming Difficult to Handle Your Taxes
Tax season exposes outdated books and mismanaged finances in every business. Without a qualified bookkeeper, you will need to spend a lot of time working on your taxes. It may also be easier to file taxes when you have quarterly financials.
What to Expect from a Qualified Bookkeeper
1. Up-to-date Financial Statements
A professional bookkeeper will handle all financial records within your company every day — this should also include bank transactions. Therefore, you can prepare taxes and plan business moves more effectively. Most of the time, they will work with accounting software to help keep track of your cash flows and avoid wasting time with data entry.
2. Proper Handling of Job Costing
It is vital to track all costs within your business by job detail and item — known as job costing. Doing this is a critical part of bookkeeping because you get to determine the exact amount that projects cost. Having a qualified bookkeeper means that you can rely on the job costing information they provide, thus making it easier to make financial decisions.
3. Good Communication
Accounting is filled with jargon such as liabilities, assets, income, accounts payable, and so much more. Although your bookkeeper can speak the accounting language, they should be able to clearly explain the books to you in a simpler language. Doing this keeps you in the loop by ensuring you know every little financial move in your business.
4. Handling Delinquent Accounts
One of the least favorite things to have on your priority list is delinquent accounts. Resolving these accounts is essential in safeguarding your bottom line. Your bookkeeper will help you collect on delinquent accounts, thus ensuring you stay profitable. They will help you develop a collection plan to eliminate guesswork and increase efficiency.
5. Increased Security Measures
Professional bookkeepers will also monitor your accounts to ensure your financial data is well protected. All security essentials need to be in place to help protect your company from fraudulent activities. Having high-security standards will help boost your brand because your consumers associate your business with dependability and privacy.
6. Attention to Detail
Your business needs someone who can closely monitor the little things when your business is expanding. The fundamental financial operations set up the tone for the big things such as acquisitions and mergers. Qualified bookkeepers always ensure your financial books are in order so that you can focus on more important matters.
7. Strong Commitment to Your Business
A bookkeeper will make your business their number one priority. They focus on ensuring all your financial records are handled properly. This will allow you to work on other aspects of your business because you are guaranteed things will get done. Your bookkeeper will guide you in the right direction when it comes to financial matters.
Get Professional Bookkeeping Services Today
It is time to let us help with some of the pain points. At Palazzo & Company, we provide year-round payroll and bank reconciliation services.