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How You Know it's Time to Hire a Bookkeeper

When you first open your business, you might be able to run everything by yourself. Eventually, hiring a bookkeeper will become a vital step to help ensure continual growth for your business. Continue reading for 5 signs that indicate it’s time to hire a bookkeeper for your business.

When you first open your business, you might be able to run everything by yourself. Eventually, hiring a bookkeeper becomes a vital step that helps ensure continual growth for your business. It may seem unnecessary at first, but hiring a bookkeeper can help save you from several business problems down the road.

Here are 5 signs that indicate it’s time to hire a bookkeeper:

Your business has grown substantially in recent months

When your business starts to grow, your workload tends to grow in tandem. Trying to run a business by yourself leads to additional stress. As your business grows, a dedicated bookkeeper can help reduce that stress. It's important that your invoices and receipts are managed properly. Bookkeepers help keep track of all of your organization’s purchases, expenses and sales.

Unpredictable cash flow

When work starts to get busy, things sometimes fall through the cracks. Invoices can be left unpaid, and receipts go unaccounted for. This leads to outdated books and statements, which can cause unpredictable business cash flows. Hiring a bookkeeper can help eliminate that problem and allow you to focus on other tasks. They can stay on top of the payments and make sure your books are in order. When your bookkeeping is incorrect, you are not aware of the actual state of your business's finances. Unpredictable cash flow makes it extremely difficult to gauge how your business is performing and may cause setbacks.

Your business isn’t ready for tax season

Preparing for tax season is very important. You don't want to leave anything for the last minute. Giving everything to your accountant to handle shortly before taxes are due isn’t an effective use of anyone's time. Without a system in place to monitor your books, an accountant will need ample time to organize everything, and potentially charge a hefty fee along the way. Bookkeepers can help you with tax preparation throughout the year, so your business will be ready for tax season. Besides helping you with your business’s current taxes, bookkeepers can also help you with any retroactive bookkeeping your company might need.

Your accountant does your bookkeeping

Simply put, accountants and bookkeepers do not do the same things for a business. Accountants are in charge of recording financial information as well as analyzing, reporting, and preparing tax documents. Bookkeepers, on the other hand, are responsible for the organization’s various accounts. They monitor the company’s different transactions and create multiple financial statements and reports. After the statements are created, you can review the reports with your financial advisor to better understand the financial health of your business. If you have your accountant also handling the bookkeeping, you are unknowingly preventing them from focusing on their actual duties.

Bookkeeping is taking up too much of your time

You most likely did not start your business to spend all of your time doing the bookkeeping. If bookkeeping is taking up your valuable time and energy, then it's a tell-tale sign to hire a bookkeeper. Doing your own bookkeeping isn’t practical in the long run. Proper bookkeeping requires a lot of time and dedication, and if not done correctly, may create roadblocks for your business. Hiring a bookkeeper will allow you to focus on the other important aspects of your business and give you the peace of mind knowing that it is being done correctly.

Understanding when it’s time to hire a bookkeeper is important for your business's overall success. When it comes time to hire a bookkeeper, you have to consider what you want out of that relationship. The KPMG Spark managed accounting service serves your growing business’ accounting needs through the combination of a specialized software interface, automation technology, and human assistance. That combination of services is what differentiates KPMG Spark from the rest. Contact KPMG Spark for more information on its bookkeeping services.

 

 

The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG LLP.

This blog article is not intended to address or provide advice concerning the specific circumstances of any particular individual or entity and does not constitute an endorsement of any entity or its products or services.

Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

The following information is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

Alexandra OjalvoOctober 19, 2021Posted In: Business Tips

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