As a small business owner, you probably wear many hats within your business. You may be preparing invoices one day and dealing with the bank the next. As an entrepreneur, it only makes sense that you want to keep a watchful eye on all the activities of your business. In the beginning, this can be quite resourceful and can help minimize costs. However, over time, this can lead to deeper problems for your company. One of the main culprits, is poor bookkeeping services. When it comes to bookkeeping services for your small business, it’s best to leave this job to the professionals. Whether you’re looking for long-term success, internal growth, or a more sustained profit, the experts at SD Associates are sharing why bookkeepers are essential and eight signs you should invest in a bookkeeping service.
Books are outdated
Your company’s general ledger should always be kept up to date. Outdated books and records can equal bad news for your business. You’ll have trouble understanding your cash flow needs and as well as not maintaining a firm handle on your finances. So, if you have paperwork scattered across your dinner table and shoeboxes filled with untracked receipts, it’s time to call in a professional to help you better keep track of your business transactions.
Set of books has never been maintained before
You’re an entrepreneur, which probably means you may have not gone to school for finance, and that’s okay! While you may prefer to handle most aspects of your business yourself, if you’ve never tackled bookkeeping before, now is not the time to start. Running a business and trying to learn a whole new field of study can cause some major bumps in the road that will end up costing you more than it saves you.
Just too busy
As your business grows, so does your list of responsibilities. Your DIY approach to your bookkeeping will begin to become unsuitable. If you can’t find the time to get everything done, it’s time to reprioritize and outsource your bookkeeping services to help your business continue to grow.
Bills are being paid late
With the paperwork piling up and your lack of time, bills are bound to fall through the cracks. Late payments not only make you look unprofessional, but it can also tarnish your business’s reputation. Professional bookkeeping services include proper time management to ensure you never miss a beat (or a bill).
Missed out on tax deductions
Just as bills can fall through the cracks, so can tax deductions. Employing a professional bookkeeper can make sure your many business expenses such as digital downloads, phone bills, and online subscriptions never go undocumented. These deductibles can be used to offset the total income owned come tax time each year.
Unpredictable cash flow
Have you ever scrambled at the end of the month to cover your expenses due to a lack of cash? While this can happen because of several different scenarios, the bottom line is you have a cash flow problem. When you hire a professional to perform your bookkeeping services, they can track your accounts payable and receivable, ensuring you are always on top of your cash flow needs.
Bookkeeping software being used as a replacement
You should never completely replace your general ledger with a bookkeeping software service. While smart tools like QuickBooks can make your process more efficient and streamlined, a computer program can never substitute for a true professional.
If you’re ready to grow your business, increase profits, and streamline productivity, it’s time to consider hiring a professional bookkeeper. As your business grows, your DIY approach to managing your finances will become counterproductive. At SD Associates, we can assist you in managing your books and day-to-day financial transactions, so you have more time to make sound business decisions without the added stress of bookkeeping. Call us today at (215) 517-5600 or contact us here.