No matter what your business specializes in, finances will always be part of the picture. At the outset, you might be tempted to take care of the bookkeeping for your small business all by yourself. You might even find it to be an easy task.
But as your business grows, so does the task of bookkeeping. New staff and new regulations will require you to be more careful with your books and update them more frequently.
At what point should you enlist the aid of a professional? Here are three signs that you need a bookkeeper.
Your books always seem to be outdated
When you have other things to do, bookkeeping may slip your mind. Or perhaps you simply procrastinate updating your records. In either case, the longer you put it off, the more daunting the task becomes. If you keep finding yourself with a backlog of bookkeeping tasks, it’s definitely time to hire an expert.
Failing to update your books can lead to all sorts of problems for your business. For starters, it becomes difficult to measure your profit margins. Is your business actually succeeding, or is stuck in place? You won’t really know until you update your books.
You’ll also have a harder time predicting your cash flow. This can have negative consequences not just for your business, but for your employees and contractors as well.
A bookkeeper resolves these problems by keeping track of your financial situation on a daily basis. This helps eliminate unpleasant surprises and keeps you up-to-date on your business’ cash flow.
Taxes are increasingly difficult
Taxes are rarely pleasant, but if they’re becoming increasingly difficult, you should consider hiring a bookkeeper. If your books aren’t properly updated, you’ll have trouble making estimated tax payments. And if you have trouble making those payments, other tax woes could be right around the corner.
With a bookkeeper on the team, tax season becomes easier. You might even find yourself saving money. Certain business activities are tax deductible, and with a bookkeeper staying on top of your records, you’ll have an easier time identifying those deductible items and backing them up with receipts.
You spend too much time on bookkeeping
Bookkeeping can be a time consuming activity. But, as a business owner, your true passion is probably something other than bookkeeping. Wouldn’t you rather spend more time networking, marketing, or working directly with the business’s products and services?
Turn to a professional bookkeeper when you find yourself constantly stretched for time. This will free you up to work on the parts of the business you’re really excited about. You might even see an increase in revenue as you shift your focus.
When you’re looking for help with your bookkeeping in Denver, you’ll want to work with professionals who have plenty of experience and a record of success. That's where we come in. Bookkeeping Solutions 5280 is ready to work behind the scenes to keep your business operating smoothly. Reach out today for a free consultation.