Our blog this month, “Five signs you need to hire a bookkeeper” is about spotting those tell-tale milestones; the time-to-notice moments that lead to the crucial penny-dropping moment. You know the one:
When you realise that now is the time to get more organised, feel more in control and take charge of your working day.
Are You a “Busy All The Time”?
In our working lives, many of us are super-busy, which should mean ultra-productive.
But, this isn’t always the case. As a business owner or managing director, you could be running yourself into the ground and taking care of the things that could better be passed on to others. More to the point – people who are experts in their field.
You have tons to do:
Find new clients, keep existing ones, develop new services, comply with all the rules and regulations governing your business, and manage the financial side. This can be super stressful, but in our opinion, there’s no need.
You may assume that your financial and accounting records are in good order. Everything seems reasonable until you run a set of management accounts. Or, file a tax return. Somehow, things don’t seem quite right. Out of kilter, perhaps, but you can’t quite put your finger on precisely what.
Do you genuinely have the time to analyse everything? So, what are the five signs you need to hire a bookkeeper?
1. You’re Not Sure Where You Are With Your Cash Flow
Of the five signs you need to hire a bookkeeper, most likely, this is red flag reason number one. You feel slightly panicky that the balance in your business bank account may not cover your payroll or invoices due at the end of this month.
We know that poorly managed cash flow is the main reason some companies – apparently doing well – will dissolve; not because they’re not profitable, but because there’s been a lack of planning to ensure the business can meet all its obligations.
Cash flow is critical.
Why? Because accurate cash flow management means that you are always up to speed with your available reserves and any revenue that you are owed. A bookkeeper will be able to highlight the ebbs and flows of any seasonal trends to ensure that you keep on an even keel.
2. There’s No Time or Resources to Focus on Bookkeeping
Again, you may feel disquieted. As your business grows, so do your overall responsibilities, to the extent that certain critical things fall by the wayside. After all, you’re doing what you’re good at; it’s so much more enjoyable than tackling the books. Yes, we hear you.
The bigger your company, the bigger the scale and depth of these tasks will be, with more substantial reporting obligations, more complex expense invoices, incoming payments, sales transactions and so on.
Let Angel Bookkeeping take care of all of this for you. You do not have the time and space to manage the minutiae of your finances and have a life simultaneously. With the expertise you deserve, you’ll stay on top of your paperwork and never again face the eternal dread of doing everything yourself.
3. You Don’t Have Bookkeeping In-House
For most growing companies, there’s a tipping point where you may realise you need someone full-time.
However, it’s tough to justify a whole other salary if you fear there’s not enough regular workload for just one person.
Likewise, you may already have powerful accounting software. Nevertheless, while it can make most bookkeeping tasks easier, it can’t do everything. And, it’s not a living, thinking human being. For example, you may not be aware of all your tax-deductible expenses. Or, if there’s an alternative or more affordable business-critical purchase you could make.
Your bookkeeper has the expertise, experience, and skills you need to advise you on these essential decisions and your next moves. What we mean is, they can even help you decide on the right timing to launch a new product or service – or even if you should do it at all.
4. You Keep Missing Payments, and Your Creditors Are On Your Back
With the best will in the world, you want and need to settle your invoices on time.
Yet, your suppliers are constantly chasing you to settle their invoices. Once again, there appears to be a cash flow issue. Maybe you think you’re up to date when the exact opposite is the case. Not only does this damage vital working relationships, your lateness could also threaten your credit score, make it near-to-impossible to predict your business reserves and get in the way of paying HMRC the money you owe.
This works in reverse, too. How overdue are your client invoices?
With in-depth, contemporary skills, your friendly local bookkeeper will sort this issue in one fell swoop. The result: a happier, less frazzled you.
5. You Lack the Confidence To Do Your Own Books
And, to be fair, why wouldn’t you feel this way?
You may be an expert in roofing, building extensions, or creating websites. Your skills are why you became self-employed in the first place. We can’t all be 10/10 at everything.
If you’re unsure whether your accounts are up-to-date or precise, we must tell you something: you could have a point. It’s easy to get things wrong and, in a worst-case scenario, be fined by HMRC. A bookkeeper could remove all this uncertainty. Angel Bookkeeping can reconcile your bank accounts and business credit cards. And, run accurate reports to keep you fully informed.
In addition, we’ll work on your data entry requirements, remind you of deadlines and generally take care of your financial tasks to ensure your records are timely and error-free.
More Than Five Signs You Need to Hire a Bookkeeper: Staying Compliant
Whether VAT registered or not, your financial records are your immediate reference to tax returns and settling your obligations to HMRC. If your bookkeeping is starting to get out of control and is getting somewhat “fuzzy”, it’s definitely the time to consider engaging a bookkeeper.
Rather than struggling to keep up to speed with things, outsourcing to a professional could save you hours of work and focus on what you want and need to do to keep your customers happy and maintain a good income.
Get in Touch
We’d be delighted to support you.
Our team offers a from-scratch service to work through all your paperwork to get everything up to date for a new start. Yes, your entries, reconciliations, and ledgers will go from messy to marvellous; from cluttered to clean.
Keen to move away from all of this hassle?
Contact Angel Bookkeeping for more information.