WHEN is the Right Time to Hire a Bookkeeper?
2020 has been a horrendous year, and not one anyone expected. Businesses are limping through incredibly tough conditions and so the thought of spending hard-earned profits on a bookkeeper seems a suggestion at odd with the difficult times businesses are facing. Knowing when to hire a bookkeeper is key, however, to expanding a business.
The global health crisis has left an indelible mark on all sections of society. The high number of deaths and the effects on families will never be erased. And for many businesses, the effects will be felt for a long time too. As England faced a region-wide lockdown, the Office of National Statistics said that 64% of businesses were at risk of insolvency, and this was across all industries with just under half of businesses operating with less than six months’ cash reserves.
Financial woes add considerable extra stress to running a business but it is important, especially when trading conditions are tough, to have a strong handle on your business’s financial situation. And a bookkeeper could be the skilled person you need on your team.
How do you know when is the right time to hire a bookkeeper? Is now the time to bring a freelance bookkeeper?
Signs you need to hire a bookkeeper
Keeping on top of your bookkeeping getting in the way of running your business. The admin and financial tasks of running your business are never ending and that means that they can soon start to pile up when you switch your attention to something else or take time away from your business. If it feels like your financial records are starting to get in the way or actually running your business, it’s time to engage a bookkeeper.
You avoid bookkeeping tasks. Sending invoices and reconciling bank statements not only takes time but effort. For many people, dealing with the finances of a business is not something they enjoy doing and as a result, they avoid doing it. This means that your recordkeeping can quickly get into a mess, meaning it’ll take more effort and time to sort out. You also won’t have an accurate picture of your business’s financial position which on its own, is a dangerous thing especially if you have a growing cohort of customers who owe you money and a growing pile of bills that remain unpaid. Neither will you have accurate information for investment or loan purposes. A bookkeeper is the person who can do all this for you, giving you confidence that your finances are in good hands.
You want to save money. A bookkeeper does more than just monitor income and expenditure - they can save you money on everything from utilities to phone bills and insurance premiums.
You are behind with your bookkeeping… and your tax and VAT deadlines are looming. If you leave your bookkeeping to the last minute or when important deadlines are looming, it takes a lot longer to sort through months and months of invoices. And it is also a lot more stressful.
You’re lost. Like other areas of your business, keeping an accurate set of business financial records is a skill. A bookkeeper can help you learn the skill too!
