Owning a small business requires you to make a constant stream of decisions, one after the next, day after day. While you might have little trouble making decisions on the things that are core to your business – like what products to stock or what services to offer – other choices are outside of your comfort zone.
How to deal with accounting is a choice that you might not want to face, but you have to deal with nonetheless. This is an essential function for all businesses large and small. Should you hire a bookkeeper or hire an accountant? Or should you do it all yourself? Making the wrong choice here won’t necessarily sink your business, but it sure can make things a lot harder. Many business owners consider handling accounting on their own to cut costs, but the 8 ways DIY accounting costs more than it saves highlights how this decision can actually be more costly in the long run.
Six Signs You Need a Bookkeeper or an Accountant
As you read through this list, think about your own business and how these points apply to your operations. If a few of them hit close to home, it might be time to outsource this important task.
#1 – It Takes Too Much Time
No matter how committed you are to seeing your business succeed, there are only so many hours in the day. You can’t make more time for yourself, so at some point, it is going to be necessary to offload some of your duties. Bookkeeping and accounting are great targets for outsourcing, as they can be extremely time-consuming and they probably aren’t your area of expertise. Keep track of how much time you are spending using your bookkeeping software each month and it will quickly become clear if outside help is required.
#2 – Your Books Are Always Behind
Most small business owners are familiar with the stress that comes along with being behind on the books. When your bookkeeping lags behind, it’s hard to make the right decisions to guide your business forward. After all, you won’t have accurate, up-to-date information available, so what will your business decisions be based on? Struggling to keep up with the books isn’t a sign that you are a bad business owner – it’s a sign that you have too much to do and you need some help.
#3 – You Have Bigger Goals
If business is going well and you have been thinking about expanding, it’s unlikely that you will have time to grow your business and keep doing the bookkeeping at the same time. Also, your books are going to get more complicated as the business gets bigger, so bringing in professional help can make sure they remain accurate and reliable.
#4 – Sales Are Strong, Profits Are Not
One of the most frustrating situations for a small business owner is when sales are going strong yet profits don’t seem to be rolling in as they should. Accurate accounting is the best way to solve this problem. Having detailed records of all of your financial transactions will give you the clear picture you need to figure out what changes are needed to optimize profits.
#5 – Google is Your Accountant
Is your search history filled with accounting-related questions? Whether you are trying to correct your QuickBooks mistakes or you’re just trying to get a better grasp on how accounting works, countless hours can be wasted with search after search. Don’t go down this rabbit hole day after day when a better solution is readily available. Also, don’t waste time trying to settle the debate of bookkeeper vs. accountant for your business – both roles are important, and both can be covered by an outsourcing service like xendoo.
#6 – Cash Flow Problems Are Constant
Small businesses often struggle with cash flow. If your business is healthy overall but you are having trouble meeting your cash flow needs, this is another area where a qualified accountant can help. It’s one thing to keep accurate books, but it’s another thing entirely to understand those books and what they mean for how your business operates. With an accountant on your side, you can get insight into the bigger picture and finally understand your cash flow once and for all.
A Simple Solution
Once you reach the conclusion that a bookkeeper or accountant would be a big help for your business, one question is sure to come next – where do I turn? xendoo is the easy answer. With our bookkeeping and accounting services, you’ll spend less time deep in the books and more time serving your customers. Whether you don’t have the time to keep up with the books or you just aren’t sure that you’re doing it right, xendoo can help. Get in touch today to learn more or to get started with our services.
