EA - Warning Signs It's Time to Hire an Outsourced Accountant or Bookkeeper

Warning Signs It’s Time to Hire an Outsourced Accountant or Bookkeeper

Are you carrying more responsibility than you need to within your small business? As a business owner, it can be hard to let go of the control of certain tasks that need to be done. Too often, business owners spend their time on busy work, resulting in a situation where there isn’t enough time left for some of the most important activities to help the business grow. Right now is a great time to consider the support available to help your company. For example, there are many benefits to hiring an outsourced accountant or bookkeeper.

Strain of Accounting and Bookkeeping on a Business Owner

You are already carrying the stress of business development, employee hiring, management, and more. Why overwhelm yourself with the added strain of accounting and bookkeeping as well? Instead of spending your free time with your head buried in the financial records, you can hire an outsourced accountant or bookkeeper for assistance. It is amazing to see how much your stress levels drop when you can lean on the services offered by an industry professional.

There’s no question that maintaining an organized set of books for your business can be both confusing and time-consuming. Not only do you need to track the numbers that are moving in an out of your accounts, but you also need a way to keep track of receivables and payables. If you don’t know much about accounting, it is likely you will waste hours of time searching the internet trying to find tutorials or information. Even with the best of systems, business accounting and bookkeeping can turn into a full-time job that is hard to manage.

Some business owners try to solve this problem by hiring an in-house accountant or bookkeeper. But you will likely encounter problems with this solution. For example, you still hold the overall responsibility to ensure the employee is doing what needs to be done. Plus, you are carrying the added burden of paying for their salary and overhead costs that come from another employee in the office.

Hiring an Outsourced Accountant or Bookkeeper

Most clients reach out to us at Easier Accounting because they are overwhelmed with everything it takes to manage bookkeeping tasks. When the business is growing, business owners don’t often have the patience or time to keep up with these bookkeeping and accounting requirements. Instead of beating yourself up because you are behind with your bookkeeping, remind yourself that this process is a normal part of business growth.

It’s a good sign because it means that your business efforts are expanding and moving forward! This overwhelm also means it is the perfect time to reach out to an outsourced accountant or bookkeeper for the assistance that is needed.

The truth is tapping into the expertise offered by a financial professional might be one of the most effective decisions you could make for your company. Your accounting team can provide recommendations that will propel your business efforts forward and help you reach higher levels of success.

Warning Signs that You Need Accounting and Bookkeeping Help

How do you know when it is time to finally hire an outsourced accountant or bookkeeper? Here are some of the warning signs that indicate you need to hire the help that is needed for your business finances:

  • Working Too Much: Do you find yourself doing bookkeeping date entry or tallying tax deductions late into the night? If your business efforts are cutting into family time or personal hobbies, then it means you need to bring in extra support. You work hard throughout the day on business development, brand strategy, client relations, and more. These daily activities should take priority, often causing the busy work to fall to the backburner. Working late to the point where it cuts into your sleep means you are on the fast-track to burnout. Instead of spending your nights trying to stay current with the bookkeeping tasks, bring in the experts so you can turn your attention to your services and customers.
  • Behind on the Paperwork: A quick glance at your desk can be revealing about your ability to keep up with the bookkeeping tasks. If you have a stack of paperwork that needs to be addressed, then you should find expert help to get ahead. Staying current with Accounts Payable and Accounts Receivable are essential so you keep the money coming into your business, and you don’t fall behind on the payments that are owed. Be realistic about your efforts and ask yourself if your books are currently at this moment. If you know that the reports would be inaccurate due to inaccuracies with the transactions, then the best thing you can do is call an accounting team right away.
  • Outdated Financial Systems: Even if you have an accounting or bookkeeping system in place, you need to evaluate whether you are keeping up with industry trends. Accounting technology can be used to simplify your processes and optimize the reports that are available. If you are still tracking your business expenses manually on a spreadsheet or notebook, then you are leaving benefits on the table. Hire an outsourced accountant to get support with setting up your new system and implementing the right technology that can support your business growth.
  • Taking Time Away from Customers: Another warning sign you need an outsourced accountant or bookkeeper is that the paperwork is taking up so much time you no longer have enough time in the day to offer to your customers. When the accounting and financial reports take precedence over your clients or customers, it is a sure sign you need expert assistance.
  • Starting a New Company: Even though you have positive expectations about a DIY approach for the first few years of your new startup, you need to consider the potential consequences of skipping professional accounting services from the beginning. The best thing you can do when starting a new company is to ensure you have a solid foundation and a good financial system in place. Starting on the right foot means you are setting yourself up for success in the future. An experienced accounting team will offer advice and suggestions to help you avoid common pitfalls and problems encountered by other business owners.
  • Lack of Compliance Understanding: When it comes to tax calculations and business write-offs, it is essential you have a clear understanding of IRS requirements, as well as state and local laws. Maintaining compliance for your business efforts is not only time consuming, but it can be stressful if you don’t understand these laws. In fact, the laws often change, which means it is more effective to lean on the services of someone who truly understands the financial industry. Making a mistake could be costly, resulting in hundreds or even thousands of dollars in fines and penalties. These issues can be easily avoided by hiring an industry professional for assistance.
  • Missing Payments from Customers: Without money coming in from your customers, your business won’t be able to keep going each month. Unfortunately, it is common for businesses to have overdue payments from customers. You need to have a system in place to follow up on these payments to ensure you have the cash flow to keep up with your business expenses. There’s no doubt outstanding payments can result in a domino effect that could topple your business in the future. If you aren’t consistent about tracking and following up with payments that are due, then it is best to let someone else handle this aspect of your business. Hire a bookkeeping or accounting professional for assistance.
  • Mixing Personal and Business Finances: It is a huge mistake to be using the same bank accounts and credit cards for both personal and business transactions. Not only is it complicated to extrapolate the transactions, but you might find yourself tapping into personal finances when business operational costs need to be covered. Using the same accounts for business and personal spending is a sign you don’t have a good tracking system in place for your business. The best thing that you can do is hire an accounting team to get your business system set up so you can create clear boundaries with your spending.

As a business owner, it can be a relief to know you don’t have to carry this financial burden without support from an experienced team. If you are ready to hire an outsourced accountant or bookkeeper, then we are here to help. Not only can we assist with the ongoing tracking and financial reports for your business, but our services can also include essential tasks such as tax calculations, payroll, and more.

You deserve to have a proven accounting system to support your business needs. So, it is time to call the experts at Easier Accounting. Contact us right away to learn about the services that are available for your business needs: (888) 620-0770

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