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For those of you who read my blog regularly know that I encourage businesses to hire a virtual bookkeeper. Outsourced bookkeeping offers free time to business owners, access to financial reports for growth, up-to-date record keeping for budgeting, and profitability. I fully encourage receiving bookkeeping help when you start your business; however, many companies wait until they reach a growth spurt. Bookkeeping help keeps you informed on account information, revenue, and expenses so don’t wait too long to get help. Here are some clues you are ready to hire a virtual bookkeeper for your business.
You Don’t Have Time for Bookkeeping
Business owners take on many responsibilities. As a business owner we start the business, we plan advertising strategies, sales, services, and much more. Business owners put the bookkeeping tasks on the back burner because there are a variety of priorities in a business owners day. When you are only getting to the bookkeeping part of your job once a month or even once a week it is time to hire a virtual bookkeeper.
Your Bookkeeping Records Are Never Up-to-Date
What happens when your bookkeeping records are not up-to-date, and you need a bank account balance to purchase a large item for your business? You either guess at it or you hurry to catch up your records, but either way expenses or deposits are missing which causes reconciliations to be inaccurate. This is another sign that you need to hire a virtual bookkeeper. Hiring a virtual bookkeeper allows you to review your Profit & Loss or Balance Statement when necessary. You can compare revenue and expenses to determine the businesses monthly expenses and average revenue. Having a professional set of records assures information to potential investors, lenders, and vendors.
Revenue Is Increasing – Profits Are Not Increasing
You are working vigorously day after day and the sales don’t seem to slow down anymore so you must be increasing your revenue, right? You are tired and endlessly working yet you aren’t seeing the profits in your business from all the hard work. Without a professional bookkeeper you have no current records to show you what all your hard work is doing for you. If you are increasing revenue, there should be an increase in profit, correct? Without proper bookkeeping you wouldn’t be able to review your expenses. Every business owner should know where their money is going. Is a large amount of your money going to one type of expense? Is there an alternative to this? It is important to review your business revenue and expenses monthly, quarterly, or semi-annual, not just at income tax time.
Hire a Virtual Bookkeeper When Income Tax Season Is the Most Stressful Time of the Year
At the beginning of the income tax season you should review your bookkeeping records with your bookkeeper for the previous year. However, income tax season should not require added stress. When you hire a virtual bookkeeper, your bookkeeping will be current. A bookkeeper can ask questions necessary regarding your records and make any adjustments that the tax advisor or CPA deem necessary. Virtual bookkeepers can easily email the business Profit and Loss and Balance Statement to your tax advisor or CPA.
You Don’t Need to Hire In House – But You Do Need a Bookkeeper
You’ve realized that you need the help of a bookkeeper, but you don’t need someone working right beside you.
Here are some reasons a business owner doesn’t hire an in house bookkeeper:
- The business is mobile and doesn’t have an office or permanent location
- The company is online sales or service
- There are no additional employees and the owner of the company works from home
- You want to pass over the bookkeeping work to someone else who can retrieve data and receipts without taking too much of your time
Other Related Posts:
- Semi-Annual Bookkeeping Tips
- 5 Reasons Why You Should Outsource Bookkeeping
- What Does Work-Life Balance Mean to You
- 5 Tips to Help Prepare for Income Tax Season
- Bookkeeping Services
- Top 10 Bookkeeping Tips
- 3 Actions to Take While Starting a Business
- 3 Reasons Why You Need a Bookkeeper All Year
- 9 Initial Steps to Start a Business