Running a business, especially in the early stages, is a labour of love for many people. There are many factors that you need to address as a business owner yourself, including marketing, staffing, lead generation and productivity. With all of this going on, it can be easy to overlook something like accounting.
However, by ignoring or poorly managing your accounts, you can easily find yourself in financial difficulties with your business. Let’s take a look, then, at how to know when it will be the right time to invest in a bookkeeper.
Bookkeeping is a new skill for you
If you have never kept books before, then it’s probably not a good idea to start learning about this at the same time as you are trying to get to grips with all the other aspects of running a business. There are many pressures on a business owner, and it can be tough to try to learn such a complex skill as bookkeeping alongside managing those other pressures.
Many company owners will likely want to do the books themselves to try and save money. However, this can be a false economy. The stress and learning curve that you will need to endure will likely cost you more money in the long run than it will save. Seeking out the services and expertise of a professional bookkeeper may therefore be a much wiser course of action.
You rely too much on bookkeeping software
You can find many bookkeeping software options online that are there to help you with your accounting. However, while software like this can help, there will always be some areas or details that you can miss if you are trying to manage and use it by yourself.
Knowledge and experience cannot be substituted by computer software, and you may find that you make mistakes or don’t enjoy all the the benefits you are entitled to, because the software won’t tell you.
There is often a good balance to be achieved between using software like this and seeking the advice of a qualified bookkeeper, with this approach likely enabling you to get the best results.
There are issues paying bills on time
Paying your bills on time is key to ensuring your business runs smoothly and you have good relationships with your suppliers.
But in the absence of a capable bookkeeper to manage all of this for you, there might be issues with your organisation’s ability to pay its bills on time, including funds not being available when you need them to be there. You may also have problems with receiving invoices and filing them in the right places. This can cause confusion and delay, which adds to your stress levels.
When you hire a bookkeeper to assist you with these processes, you can expect there to be better organisation within your business, and more prompt payments. You will also be able to know that funds will be available to pay your bills when they arrive.
You are having problems collecting customer payments
The flip side to not paying your bills on time may be that you are not collecting customer payments effectively. Lack of income can seriously harm your business and your ability to grow as you want.
Having a bookkeeper to help you can ensure that customers are chased for late payments and that the money is kept rolling, thereby enabling you to keep investing in your business.
You are confused about employee deductions
Paying your employees is vital not only for their own financial safety, but also because you are required by law to pay them correctly and on time.
Understanding payroll can be confusing, especially if you are also trying to learn other aspects of bookkeeping. This is where the services of a professional accountant or bookkeeper can be greatly helpful.
The rules regarding payroll change frequently, but a bookkeeper will be able to stay on top of any changes and ensure you are paying the right amount and on time.
The income from your business is not what it should be
Business is all about making money and getting the right profits. However, you may find that you aren’t earning as much as you think you should.
There will likely be many reasons for this, but when your finances are not in a good position, this can make it harder to get the profits you need. Not only will you not get paid when you should, but you will also be spending money you don’t need to spend.
By outsourcing your financial responsibilities to a bookkeeper, you will be able to give yourself time to negotiate new supplier deals and achieve better outcomes. This, in turn, will help you make more money and increase your profits.
Your bookkeeper will also be able to help you get the tax savings you are due, in addition to helping you with any small details that could have a big impact on your business.
You may think that you can easily run your business and do the bookkeeping as well. However, to do a good job at both, you may need to seek the advice of someone who can put your business in the right direction.
Don’t forget that as well as our bookkeeping in Suffolk and Ipswich, here at ST Accountancy, we can also give you the benefit of the best possible tax advice in Ipswich, to further help ensure your business is taking the right steps with this aspect of its operations.