When you’re experiencing a time of growth in your business, you may be wondering in which areas to cut costs and what things might be worth investing in a bit more. Many business owners would rather save money when it comes to accounting by doing their books themselves, and this instinct is something we understand. After all, it’s not a given that business will always be booming, and help with bookkeeping hardly seems the thing you’d most like to spend some of that hard-earned cash on.
However, as businesses grow, accounting grows into a bigger and bigger task for someone who’s not an expert at it. When it comes to deciding whether or not to outsource your bookkeeping, the two main reasons people opt for the latter are 1) saving money and 2) thinking they are capable of doing their accounting to a high enough degree themselves. In this post, we’ll go over some of the reasons why having someone help you with your books is worth the investment and what are some of the signs that it might be time for you to outsource this part of your business to a trusted expert.
Here are 5 signs it might be time for you to get some help you with accounting:
- You understand the software, but not accounting itself. Understanding accounting goes beyond understanding the bookkeeping software of your choice. When it comes to understanding cash flow, reporting and the numbers your software throws at you, a little professional help really goes a long way.
- You end up spending more money in the long run. Following from the previous point, if you’re not an experienced professional bookkeeper, it’s easy to make mistakes and miss things when doing your own accounting. In the end, you might end up having to get an accountant anyway to straighten up some of the figures you came up with. Sometimes, this might even end up costing more than if you’d gotten an accountant in to do your books in the first place. So if you feel like you might end up needing someone to check your work over, it might be better to just bite the bullet and get an expert to do your bookkeeping from the get-go.
- Not being able to see the forest for the trees. When it comes to the financial side of your business, it’s vital that you can see - and thoroughly understand - the bigger picture. Having a bookkeeper means you have an expert financial advisor at your disposal who can help you understand the overall financial status of your business better. If you struggle to do this on your own, it might be time to outsource your bookkeeping.
- Time with your loved ones suffers. If you’re not very experienced in bookkeeping, you’re bound to spend more time overall on this task than a professional would. If you’re starting to miss your kids’ sporting events, family time, and other important moments because you’re hunched over a big pile of paperwork instead, it might be time to invest in a trusted partner for bookkeeping -- this will be an investment in yourself as well as your business. So what might at first glance seem like an uninteresting business expense might well turn into the treat you deserve for all your hard work!
- You're not spotting the solutions that integrate with your accounting system. As your business grows, you'll need to put systems in place to manage workflow better. For example, you might find the amount of vendors you work with has greatly increased and you're writing many more accounts payable checks each month, or you've added more customers and aren't sure how to charge and invoice them, and how to collect the payments. In a situation like this, using a solution like Bill.com could help. Your accountant can spot these holes for you and suggest solutions to help streamline your business operations to save you time and money.
To read more about what the team at Walsh can do for your business or to set up a free consultation with us, check out our Services page.