When to Hire a Bookkeeper for Your Small Business: 6 Telltale Signs
For many small business owners, managing their own finances might work in the beginning. But there comes a time when getting professional help isn't just a nice-to-have — it's crucial for your business's future. Learn when to hire a bookkeeper with these six telltale signs.
Your records are a mess
Let's be honest: if you aren’t totally confident that you’re organizing your financial records properly, it's time to bring in a pro. A professional bookkeeper doesn't just enter numbers; they create a system that makes sense. They organize your finances in a way that:
Makes tax season less of a headache.
Ensures payroll runs smoothly and on time.
Provides a clear view of your business’ financial health at any moment.
Remember, organized records aren't just about neatness — they're about having the right information at your fingertips when you need to make crucial business decisions.
2. Reconciliation is taking too much energy
Bank reconciliation—matching your records with your bank statements—should be a pretty straightforward task. If you're spending hours trying to make the numbers add up, or worse, putting it off entirely, you're setting yourself up for trouble.
A professional bookkeeper will:
Reconcile accounts quickly and accurately.
Catching and fixing small errors before they become big problems.
Make sure you're always working with current, correct financial information.
When reconciliation isn't done properly, you're setting yourself up to make decisions based on bad data. Having a pro handle this task can save you from expensive mistakes down the road.
3. Your business is growing
Growth is exciting, but it introduces new financial challenges. As your business expands so does the complexity of your bookkeeping needs. You might find yourself dealing with:
More complex financial transactions.
A bigger team to pay.
Multiple revenue streams.
More bills to track.
A professional bookkeeper can help you manage these changes, setting up systems that scale as you grow. They’ll ensure your financial foundation remains solid while you build your business.
4. Sales are up but profits are down
This scenario is more common than you might think. Many small business owners find themselves selling more than ever, but at the end of the day, profits are still slim. If this sounds familiar, it's a clear sign you need professional help.
A skilled bookkeeper can:
Analyze your cash flow.
Identify areas where you're overspending.
Help you understand your true profit margins.
Suggest ways to improve your bottom line.
Usually, an expert pair of eyes on your books can reveal opportunities for profitability that you might have overlooked.
5. You're spending too much time on bookkeeping
As a business owner, your time is precious and limited. If you're spending more time crunching numbers than growing your business, it's time to delegate.
A professional bookkeeper frees you up to focus on what you do best:
Building client relationships.
Developing new products or services.
Strategic planning.
Remember, every hour you spend on bookkeeping is an hour you're not spending on activities that directly grow your business.
6. You're facing an audit or complex tax situation
The word "audit" strikes fear into the hearts of many small business owners. But with proper bookkeeping, it doesn't have to. If you're facing an audit, or if your tax situation has become more complex (perhaps due to expanding into new states or countries), a professional bookkeeper is key.
They can:
Keep your records audit-ready.
Deal with auditors or tax authorities.
Help you navigate complex tax regulations.
Potentially save you money on taxes with better planning.
In conclusion, while doing your own books might seem like you're saving money, it could be costing you in ways you haven't considered. Professional bookkeepers do more than keep your numbers straight — they help your business succeed. If any of these signs sound familiar, it might be time to talk with a pro. The experienced accountants at Archer Lewis are ready to help. Learn how we can help your business with bookkeeping.