Running a business is not easy—trust us, we know. Otherwise, everyone would be doing it, right? In business it can feel like you are constantly spinning plates, and as expert bookkeepers for creatives, we see many business owners struggle when it comes to their accounts.
So If you’ve ever found yourself buried under a mountain of receipts, asking yourself if it’s all worth it, you’re not alone. If you are wondering when to hire a bookkeeper, here are 10 telltale signs it’s time to put down the calculator and call in the professionals.
You Spend Way Too Much Time on Bookkeeping
If you find yourself spending more time managing your books than focusing on your business, then you have a problem. Bookkeeping should not be a time-consuming activity—at least not for you as a business owner. You should be investing your time in the more strategic side of your business rather than sitting at a desk punching in numbers on a calculator.
If you find that you are spending a large chunk of your time organising your books then why not just pay someone to do it instead? Not only will a bookkeeper be able to do it faster (and probably to a slightly better standard…), but it will also free up your time to spend on other areas of your business.
Your Books Are Always Outdated
Keeping your financial records up-to-date is crucial. If your books are stuck further in the past than your ageing, technophobic relative, it’s time to get a bookkeeper who can bring them into the present day. Having outdated books is not just frustrating but can cause major issues down the track, especially as tax time rolls around
If your records aren’t up to date, you don’t have a clear picture of how your business is performing or if there are any issues or discrepancies that need to be rectified. So, if you are falling behind with logging your finances, this is the best time to hire a bookkeeper, as they will bring you back up to speed.
You Are Always Running Out of Money
Cash is what makes your business (and the world) go round, and bad cash flow management can do massive harm to your finances. It’s easy to lose track of exactly what is coming in and out of your business but if you’re spending more money than you are making then your business will very quickly come unstuck.
While cash flow forecasting software can help, hiring a professional will help even more. So if your cash flow is more like a cash trickle, and you’re constantly wondering where all your money went, then a bookkeeper is exactly what you need. They can help monitor your accounts and find areas for improvement, so that your money is flowing faster than champagne at a wedding.
You Miss Out on Tax Deductions
If your idea of sorting out your deductible expenses is Googling “what can I claim on tax,” it’s time to bring in a professional. When it comes to running a business, every penny counts, especially in the current financial times.
So, if you think that your tax bill could be reduced, bookkeepers can help identify these potential tax deductions and ensure you take advantage of all the savings available to you.
To help you out, here are some small business expenses every creative person should know about.
You Are Overwhelmed by Financial Statements
Understanding financial statements is essential for making informed decisions. After all, how can you come up with a super-smart financial strategy if you don’t understand the difference between a profit and loss statement and a balance sheet? If your financial statements seem more like ancient hieroglyphs than insightful data, then it’s time to hire a bookkeeper.
Your financial statements are only as good as the data you put in them, so if you are unsure what goes where, it is better to get help from the professionals. They will ensure that your financial statements are completely accurate, providing you with crystal clear clarity on how your business is going and helping you understand your full financial situation.
Your Business Is Growing
As your business grows, so do your financial responsibilities, and – in the wise words of The Notorious BIG – more money equals more problems. When business starts and you are a one-man band, the books are easy, and it is understandable that you can handle the bookkeeping yourself.
But your business will inevitably grow, and this means you will need sound financial insight to understand which direction your business should take. A bookkeeper can manage the increased complexity as your business grows and keep all your finances in working order, no matter its size.
You Struggle with Payroll
Payroll can be complicated and time-consuming, especially as you hire more people. Understanding the differences between tax brackets and regulations can be a lot to comprehend. So If payday leaves you filled with dread, with you frantically trying to ensure everyone gets paid correctly, then why put yourself through the stress?
A bookkeeper can handle all your payroll processing for you, ensuring everyone is paid correctly and on time, and you don’t end up on the receiving end of your employees’ passive-aggressive emails once they have checked their bank balance.
You Have Trouble with Accounts Receivable/Payable
To put it simply, accounts payable is the money that your business owes to others. While accounts receivable is the money that is owed to your business. While no one really likes chasing after money, managing your invoices and payments is essential for your business to… well, be in business. But when it gets busy, keeping on top of what has and hasn’t been paid can become a harder task than it looks.
A bookkeeper can ensure that all your bills are paid on time and chase up any invoices that are owed to you. This not only keeps your finances in good health but also keeps your professional relationships on good terms and your business’ stellar reputation intact.
You Are Planning to Apply for a Loan
Whether you are looking to start your business or expand it further, you may require a little bit of financial help in the form of a business loan. But for a loan application to be successful, lenders and investors require accurate financial records if they are to consider giving you the capital you are after.
If the thought of preparing for a loan application makes you break out in a cold sweat, don’t worry. A bookkeeper can help prepare all the necessary documentation for you and ensure your books are in tip-top order so that your would-be investor has an application they cannot refuse and you get the money you need to level up your business.
You Keep Making Silly Mistakes
A mistake here and a mistake there might not seem like the end of the world. It’s all part of the learning process, you might think. But mistakes do add up and can ultimately be very costly to your business in both time and money.
Desperately searching for receipts that you threw out months ago or filing your tax return incorrectly can lead to many wasted hours, along with some very tense conversations with HMRC, to say the least.
If you find yourself making a lot of silly mistakes when it comes to your accounts, then it’s probably time to hire a professional bookkeeper to make sure that everything is running as it should.
Let’s face it. In the end, hiring a bookkeeper can save both your sanity and your business, giving you the financial clarity for your business to succeed.
So, if you are a business owner and find yourself wondering when to hire a bookkeeper for your business, then now is probably the time.
Trust us, your future self will thank you.
If you still want to tackle your finances by yourself, then we salute you and recommend you read our beginner’s guide to bookkeeping.
So what next?
Well it’s time to find the best bookkeeper for your business. As both seasoned bookkeepers and accountants for the creative industry we know creative businesses like the back of our hand and are here to help our creative clients navigate the numbers and make smarter financial decisions.
We are here to take the complexity out of the bookkeeping and accounting world so our clients get back to doing what they do best – turning their creative ideas into greater business success. So if you are looking for a bookkeeper to help get your accounts in order then get in touch now.
