Tuesday Tip Day! Update Your Business Plan!
You’ve had to make a lot of tough decisions for your company, from what type of work to focus your efforts on to who to hire to help you do it and where to advertise. One aspect that you’re still struggling with, though, is the day to day record keeping work. Your customers often pay you late and you don’t even realize it until you go to match your invoices to their checks.
Is this a sign that it’s time to hire a bookkeeper?
What a Bookkeeper Can Do For Your Business
When you think of bookkeepers, you may picture someone who logs your receipts and keeps your expenses and income organized. While this is an important aspect of a bookkeeper’s job, they can do a lot more for your company. Do you need any of these services that a bookkeeper can provide?
- Payroll and tax withholding. From handling the initial hire paperwork for new employees to actually withholding taxes and printing checks, your bookkeeper can take the pain out of payday. Bonus: because they’re not really a part of the team, it’s easy for your bookkeeper to tell your employees that your company won’t be giving advances on their checks.
- Financial reporting. To secure funding for anything from working capital to real estate purchases, you’ll need an up to date financial report. To generate an up to date financial report, you’ll need to actually stay on top of your books. If they’re not getting updated weekly, you need to call in an expert.
- Invoices and payment tracking. It’s one thing to get the calls and do the work, but it’s sometimes another thing to invoice and collect that money. Although a bookkeeper isn’t a collection agent, they will know exactly who still owes for what so that you can take further action.
How to Tell That the Time Has Come
Hiring a bookkeeper can be much less of an expense than you might imagine, especially when you consider the value of your time. If you’re able to make $50 an hour doing what you do best and your bookkeeper only charges $30, plus they’re a heck of a lot faster than you are at doing the books, it’s really a no-brainer.
When your business was brand new, it was necessary and not all that difficult to do the books yourself. But you’ve grown substantially and it’s really time to start giving some tasks away. Bookkeeping is one you should hand off as quickly as possible for a variety of reasons, including reducing the risk your company is exposed to in the case of improperly filed taxes or other financial faux pas.