It could be the difference between thriving and surviving in the early years of your business. Here’s how to read the signs that your start up needs a bookkeeping.
When your business is in start-up mode it should be lean and agile, which often means taking on multiple responsibilities yourself. It’s a big ask but a bookkeeper can take some of the heat off in what can be a pressure cooker environment in the early years of a business.
Bookkeepers can help with payroll processing, invoicing, account tracking, tax return services, general accounts maintenance, trial balances and account service tracking, to name a few. But it doesn’t mean you shouldn’t have some involvement in the management of your business finances.
So how do you know the time has come to get some outside help with your bookkeeping? Keep an eye out for these five warning signs:
- You’re drowning in paperwork
Unless your start up is an accounting firm, there will come a time when you struggle to stay on top of the paperwork. The longer you leave it, the further you can fall behind. Forgetting to invoice, losing a receipt and being chased for money are tell-tale signs the time has come. This is where bookkeepers can be worth their weight in gold, reducing some of the burden, worry and stress of being in business.
- You’re fudging critical decisions
When you’re starting up you’ll be making regular decisions based on financial performance. If the data you’re using is out of date, inaccurate and difficult to follow, then it may affect the quality of your decision.
- You’re hiring staff
As soon as you start to bring on employees or sub-contractors, things can get more complex. Professional bookkeepers will help you keep abreast of the regulations, and keep on top of your payroll obligations.
- You’re not getting the most from your software
If you’ve invested in financial management software or an online tool but aren’t seeing the value, a good bookkeeper will be able to integrate their systems and show you how to make the most of your investment.
- HMRC is on the phone
If you need to submit your accounts for review and your record keeping isn’t accurate, you could be in real trouble. By calling in an accounting professional, you can ensure everything remains above board.
The discipline bookkeeping brings to your business will also set you up with good habits as an entrepreneur. You may even be able to pick up some tricks and tools that will help you in the long term. Outsourcing your books doesn’t mean you become completely hands-off, but it does mean you can free up your time to let your true expertise shine.
For more information on bookkeeping that’s right for your business, check out our guide to finding the perfect accountant or bookkeeper.