7 Signs Your Business Needs a Professional Bookkeeper

1. YOUR BOOKS ARE NOT UP-TO-DATE SO YOU NEVER TRULY KNOW THE STATUS OF YOUR FINANCES.

  • In the words of Peter Drucker, one of the greatest management thinkers of all time, "If you can't measure it, you can't improve it."
  • A professional bookkeeper will be able to show how profitable your business is, where your cash is being spent, and monitor all business balances. You will receive daily/weekly/monthly financial reports to help guide your business decisions.

2. YOU ARE EXPERIENCING CASH FLOW ISSUES.

  • You are too busy to send out customer invoices on time. As a result, your cash flow suffers. You may even run the risk that invoices are completely missed altogether. In addition, customers are less likely to pay an invoice they receive months late.
  • You do not have time to follow up on your customer's past due invoices. It helps to separate the face of the business from the invoice collection process. You can focus on maintaining your client relationships while your bookkeeper focuses on ensuring the cash is collected.
  • Your vendor bills are often paid late. Bills fall through the cracks because you do not have the time to categorize and pay them. As a result, you may strain your vendor relationships, incur late fees, and build a bad credit history.
  • Bookkeepers track your accounts receivable, accounts payable, and follow up on overdue invoices so you are aware of your cash flow position at all times.

3. BOOKKEEPING IS TAKING TIME AWAY FROM GROWING YOUR BUSINESS.

  • Your highest value work is in growing your business and nobody can do it as well as you. If you feel that bookkeeping is pulling you away from this, it's time to consider outsourcing your bookkeeping to a professional.

4. YOU'RE NOT CONFIDENT IN YOUR BOOKKEEPING SKILLS.

  • Managing the books yourself may be easy when you first start your business. However, as your business grows, so too does its complexity and your financial needs. If you are not sure if you are managing your books properly or have the proper financial information to guide your business decisions, it's time to hire a professional bookkeeper.

5. YOU ARE ONLY UPDATING YOUR BOOKS BEFORE TAX SEASON.

  • If you are updating your books once per year so your CPA can prepare your tax return, you are "flying blind" most of the year. If the tax filing deadline is the first time you see your business' profitability, you are not giving yourself the opportunity to make timely and necessary business decisions throughout the year.

6. YOU MISS OUT ON TAX DEDUCTIONS OR FILE YOUR TAX RETURNS LATE.

  • Professional bookkeepers will record transactions and properly categorize them in a timely manner so that you don't miss any tax deductions.
  • If you are consistently late in filing your tax returns, you are incurring fines and penalties that are not tax deductible. Professional bookkeeping fees are tax deductible!

7.YOU ARE OVERPAYING FOR YOUR BOOKKEEPING.

  • CPAs typically charge over $150 per hour. The same level of bookkeeping quality can be obtained by an experienced and dedicated bookkeeper who costs much less.
  • Employees require additional costs such as employee taxes, benefits, overhead expenses, management, etc. Outsourcing the business' bookkeeping can be much more cost effective.

If any of these points sound familiar, it is time to hire a professional Bookkeeper!

PowerBooks will handle your bookkeeping and provide the monthly financial statements you need to monitor your business’ finances. With PowerBooks, you will receive amazing bookkeeping services at a great price that your business can afford.

Start a free trial with PowerBooks today!