Deciding when to turn your bookkeeping over to someone else can be challenging. It's your money, your business, and trusting someone else with these critical responsibilities is not easy. Initially, when transaction volumes are low, it makes sense for owners to monitor every penny closely—both expenditures and incoming revenue. However, as the business expands, staying on top of bookkeeping becomes increasingly difficult and can often be neglected.
Here are a few signs that it might be time to hire a professional bookkeeper:
Neglected Records: You find yourself constantly updating records at the last minute. This isn't a sign of disinterest, but rather an indication of having too many other tasks needing your attention.
Feedback from Tax Professionals: Your tax preparer may tell you that your books need serious help, or they might charge extra for cleaning up your accounts before handling your taxes.
Inaccurate Balance Sheets: If you regularly run balance sheets (and you should!) and the numbers don't add up, it’s a clear sign of trouble. Here’s what you should look for in a balance sheet!
Mismatched Statements: The balances from your bank or credit card statements drastically differ from what's in your books, including older transactions that haven’t been reconciled properly.
Choosing the Right Help
Once you decide to seek help, the next step is choosing the right person for the job. If you're thinking about hiring internally and considering candidates like a well-meaning relative, make sure they possess the necessary bookkeeping skills. Without the right expertise, you might end up spending more time (and money) fixing new errors—a diversion from focusing on critical business areas.
Alternatively, you might opt to hire an external professional. Here are essential factors to consider:
References: Do they have references you can contact?
Reference Checks: Have you verified these references to ensure credibility?
Client Base: How extensive is their experience with clients of similar size and industry? The needs of an e-commerce company can vastly differ from those of a coaching firm.
Services Offered: What specific tasks will they handle and what will they not cover?
Communication: How frequently will they update you, and by what methods will they keep in touch?
Hiring someone to manage your financial records is a significant decision. If you're looking for guidance or need professional bookkeeping services, reach out to us to see if we're a good fit for your needs!
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