3 Ways to know you have outgrown doing your bookkeeping yourself or engaging only a bookkeeper
At some point in your business, you probably will have to handle bookkeeping yourself, particularly when you just got started, or hire a bookkeeper to save on costs. You wouldn’t have too many transactions and would want to ensure that they are tracked and recorded.
This is only for a while because there are many other benefits that you will not be able to get if you use only a bookkeeper.
I’d like to share with you three ways you would know if you’ve outgrown doing your bookkeeping yourself or engaging only a bookkeeper.
- You are unsure about the financial health of your business
If you are unaware of your business’s financial status, including whether you have made a profit or loss, one or two weeks after the end of the month, and if you are not receiving a financial statement every month, it is likely time to consider outsourcing your bookkeeping tasks. Even if you are a small business owner or a Fortune 500 company, it is essential to have a clear understanding of your financial position, including revenue, profit, and expenses in various categories.
It’s difficult to manage what you don’t measure and waiting three months or more to receive this critical information can hinder your ability to make informed business decisions. Therefore, it’s important to stay up-to-date month-to-month to ensure you have the necessary information to make the right decisions for your business.
2. You are not keeping up with your taxes
Filing for extensions or submitting tax returns late, as well as delaying the process until later in the year, can be detrimental to your business. By waiting until the end of the year to file your returns, you may still be fixated on the previous financial year and uncertain about your tax liability. This approach could ultimately work against your business interests.
3. You are not doing Business Planning
As a growth-minded business owner, it is crucial to always be forward-thinking. While compliance obligations such as tax filing are necessary, it’s equally important to plan ahead and strategize for business growth. Simply completing your financials for tax purposes without reviewing them or using the data to inform business planning indicates a need for more than just bookkeeping services.
If you are not engaged in business planning, you may be overlooking the future of your business. As a business owner, your primary objectives likely include profitability and achieving other goals. Without considering the future and planning for the upcoming year or quarter, you may have surpassed the limitations of a bookkeeper or handling the bookkeeping on your own. This is why partnering with a small business advisory firm such as RCN CPAs and Business Advisors is recommended.
Click the link below to schedule a complimentary 30-minute discovery session with a firm that will take care of your accounting, bookkeeping, payroll, and tax needs.
