If you’re a solopreneur, startup, or small business owner, you’re probably wearing every hat at your business. You do product development, sales, marketing, paperwork, customer interaction, and everything in between… including your bookkeeping. You almost certainly don’t enjoy doing your bookkeeping, and probably have nagging doubts about whether you’re handling it all correctly.
Here are four signs that you might need some accounting help:
1. Your reconciliations are behind… or non-existent.
It’s easy for this step of your accounting to get overlooked, but it’s important to regularly reconcile your accounts within your bookkeeping software to create a reference point in time where all data is correct. It prevents one issue six months ago from snowballing into hours of digging to find one discrepancy. If you’re behind on reconciliations, consider hiring a bookkeeper to keep you up to speed.
2. You have no idea what to expect next month, much less next year.
A good accountant is part clairvoyant — but thanks to solid data, not paranormal powers! If your own bookkeeping efforts aren’t showing you patterns that help you forecast for the future, find an accountant so that the data you’re tracking generates useful reports, and let your accountant help you decipher what they mean!
3. You dread tax time.
Let’s be real: tax time is no one’s favorite season. But if you’re well-prepared with solid bookkeeping records, it should feel like a minor annoyance. If the thought of scraping together shoeboxes of receipts and scrambling to gather numbers for your tax accountant makes you want to crawl into a hole until April 16, get professional accounting help. The relief of knowing that your documents are in order every year is well worth the cost!
4. You have to choose between “marketing time” and “accounting time”.
Unfortunately, there are only so many hours in a day. If you find yourself having to choose between keeping your accounting in line, and spending time on customer acquisition, it’s time to hire a bookkeeper. Nothing is more important than sales and growth — after all, there’s no accounting to do without revenue coming in!
There’s a lot to be said for knowing how to handle every role in your company, bootstrapping your business, and saving cash where you can. But there’s also a time to delegate roles to professionals. If you’re seeing any of these four signs that your books are dicey, hire a bookkeeper and enjoy the sweet relief of being able to focus your energy on growing your business.