How do you know when it’s time to hire a bookkeeper? These questions help to determine if it’s the right time to find a bookkeeping professional to help keep your business finances in order.

Am I Spending Too Much Time on Paperwork Instead of Building My Business?

Those receipts won’t sort themselves. Oftentimes small and/or new businesses refuse to let go of data entry and other tasks that might be better suited for outsourcing. Doing it yourself can save a few dollars when money is tight, but it could be costing you more than you realize.

Take some time to analyze how much time you’re spending on paperwork related to bookkeeping (or other tasks) compared to time spent building your business. It might be time to hire a bookkeeper if the time you’re spending processing paperwork is impacting the time you spend growing your business and maximizing profit.

Am I Really Saving Money by Doing It Myself?

Have you ever created a cost analysis that shows the true cost of hiring a bookkeeper vs. the cost of doing it yourself? Many people only think about it from the budget perspective of the monthly fee, but you also need to consider your time and the value a bookkeeper brings to your business.

Some businesses discover they are losing money keeping this task in-house because they are overlooking significant items, such as:

• Expenses that could be tax deductible
• Recurring expenses that could be reduced or eliminated entirely
• Unauthorized charges
• Avoiding fines from non-compliance with state and federal guidelines

These are just a few of the cost-saving measures that bookkeeping services can offer. When you really do the math, it’s an important investment in the future of your company.

Do I Have a Clear Picture of Where My Business Stands Financially?

Do you have a handle on the financial future of your business, or are you surviving from one invoice to the next? If it’s the latter, it may be time to hire a bookkeeper. They can assist you with account management, give you a clear understanding of incoming payments and outgoing expenses, and assist you with short- and long-term financial goals. This is especially important when large expenses (planned or otherwise) occur, such as replacing equipment, renting an office space, or traveling for business.

A professional bookkeeper is the best person to set up your bookkeeping software, like QuickBooks. Once set up can arrange to have them reconcile your software with your accounts weekly, monthly and quarterly.

Do I Understand the Difference Between Accountants and Bookkeepers?

While some accountants offer bookkeeping services, the two roles are fundamentally different, and the cost to hire them is often different as well. Many accountants charge significantly more per hour than bookkeepers, which means that shoebox full of unorganized receipts you handed to your CPA last year could be costing you a lot more than you realize. Bookkeepers can take your receipts and other paperwork and organize it for your accountant well in advance, which saves you time, money, and stress.

Am I Complying with Local, State, and Federal Laws?

Business owners have a multitude of local, state, and federal guidelines to follow. Where business expenses and taxes are concerned and failure to comply comes with a hefty fine. A bookkeeper can help you categorize your expenses appropriately and ensure that you’re staying in compliance with any relevant regulations. They also help ensure your financials are in order in case of an audit or other review process. This benefit alone can save you a lot of time and a lot of stress.

Is it time to hire a bookkeeper? If any of the above questions made you think twice, then yes, it’s time.

If you’d like to schedule a complimentary 30 minute consultation to talk about what working with a bookkeeper could do for your business, contact me via email or phone and we’ll find a time to connect.