As we start 2025, many of us are spending January focused on closing out last year and prepping for tax time. But, it can be overwhelming when you’re staring at a stack of receipts and outstanding invoices from last month. As the business owner, you know it has to get done, but you’d much rather be working on well, just about anything else.
It may be time to hire a professional who can not only manage the minutia of your books, but potentially save you from business problems down the line.
See if these 6 Signs It’s Time to Add a Bookkeeper to Your Team This Year resonate with you:
1. You’re Short On Time
Time is one resource that you’re not going to get more of just because you wish for it. At some point, it just doesn’t make sense spending hours on your bookkeeping when it would be better spent managing customer relationships and generating new sales. Doing your own bookkeeping just isn’t practical in the long-run. Proper (and accurate!) bookkeeping requires time, expertise and dedication and, if it’s not done correctly, may create costly mistakes. Give yourself peace of mind knowing that it’s being done correctly.
2. You’re Missing Things and Making Mistakes
You’re doing the best you can, but you keep finding errors as your business grows and things get more complicated. Maybe you’re not recording expenses correctly, or you aren’t keeping track of receipts. Or maybe you are simply making data entry mistakes that end up costing the business money.
Are you confident you have the knowledge you need to properly document and categorize your transactions in order to maximize your tax deductions? Are you sure you’re optimizing cash flow like you should be? Maybe you are suddenly incurring late fees or interest because you aren’t staying on top of your finances?
Making mistakes that jeopardize financial accuracy and cost you money is a clear sign you need some help.
3. You’re Behind
Are your financial records a few months behind? If you’re not making sure your bank statements and financial data is being recorded, reconciled and recorded regularly, you’re going to have an inaccurate picture of your revenue and cash flow. This means you won’t be able to make the smartest decisions for your business.
Bookkeeping is something that needs to be tracked daily, weekly and monthly, not just when you have time to stumble through the pile on your desk. Remember, knowledge is power. Don’t put yourself in a situation where you are making risky decisions just because your financial data isn’t up-to-date.
4. Tax Season is Scary
If your books are up-to-date and kept well, tax season should be a breeze! But, if you’re living in fear of tax season, that’s a sign that you need some help. Not only that, it’s possible you are missing out on tax benefits you could have utilized because you weren’t aware of items that your bookkeeper is. In addition, you could be facing missed deadlines or costly errors in your tax filings that will haunt you after your taxes are filed.
Professionals will help you ensure compliance and optimize deductions and credits, which should help you sleep well at night. Let a bookkeeper help with tax preparation items throughout the year so you’re ready.
5. Your Business Is Growing
Business is on the upswing! Which is great, but it may also be making you busier than ever with less time to maintain your books. Bringing on a bookkeeper will help you to make sure invoices and receipts are managed properly so you can continue to focus on your growth. As you grow, your financial transactions may also start becoming more complex. Here is where a dedicated bookkeeper can manage your day-to-day finances so you stay on top of what’s happening in your business and know where to focus to become even more profitable.
6. Cash Flow is Unpredictable
In tandem with the previous point, as your business grows, things may start falling through the cracks. Perhaps an invoice didn’t get paid on time or receipts weren’t added to where they should have been. This can lead to unpredictable cash flow, and you won’t be sure of the actual state of your finances. Unpredictable cash flow can make it extremely difficult to gauge where your business is at and where it’s headed. With a dedicated bookkeeper, you should be able to have access to your cash flow number at any time so you can strategically expand your business and keep your finger on the pulse.
Running a business is tough. Between managing staff, operations, sales, and marketing, it’s easy to let bookkeeping fall by the wayside. However, messy financial records can lead to missed opportunities, tax headaches, and even costly fines. Let a bookkeeper help you identify ways you can cut costs and enhance profits so you have a clear picture of your business.
Contact us today for a free consultation and see how we can help you and your business!