Is your business struggling to keep up with invoices, expenses, and all other aspects of bookkeeping?
Unsurprisingly, one of the most common reasons that small businesses fail is that they run out of cash. Simply put, proper bookkeeping can solve cash flow issues.
How do you know when is the right time to outsource your accounting?
You’re in luck! Read on for the top five signs that you need to outsource bookkeeping services that will help your business stay afloat.
1. One Person Handles Everything
Do you have one lone person doing all your finances? While that may seem efficient to you, it is actually very risky.
While they may be doing a great job, there is nobody overseeing the work. They may do so much that you don’t really know your business’s financial standing.
Outsourcing these processes will give you experts in the field and a second opinion on anything that maybe seemed strange while it was done in-house.
2. Bookkeeping Overshadows Other Business Activities
Even if more than one person works on the business numbers, how much time does it take? Do you have staff pulling double duty? Meaning, are they doing the finances even though that’s not their actual job?
You need to think about outsourcing if you realize working on the books is taking time away from other business functions. This can lead to limited growth and stunted profits.
3. No Longer Cost-Effective for an In-House Team
Hiring full-time financial staff can be expensive for many businesses. Some will turn to part-time bookkeepers to keep costs low, but this can still lead to money issues and limited access to the employee.
Outsourcing often is much cheaper than having even part-time staff. Research companies that best suit your needs and business goals.
4. You Need to Scale Bookkeeping Services
Growing quickly is a good thing for businesses. Maybe you are in the middle of a large hiring push. All good signs, but more staff means more bookkeeping work.
If you are functioning with a small in-house team, you may run into issues when scaling.
With rapid growth, outsourcing means access to large resources without having to hire and train new financial staff.
5. Your Taxes Are Getting Out of Control
One last reason to outsource is tax trouble. Taxes are complicated, even for most experienced bookkeepers.
If you want to breathe easy about your tax information, outsourcing will take the pressure off your shoulders and ensure you have accurate and complete documents for all tax-related purposes.
This means if you ever get audited by the IRS, you will be ready.
Take Your Bookkeeping to the Next Level
Now you know some of the top signs that your business may be in need of bookkeeping services.
Do any of these signs apply to your business? Let us know in the comments!
Talk with your team about finding the right accountant to handle your bookkeeping, depending on the size of your business, industry, and budget.
Do you have additional questions or concerns about bookkeeping? Contact us and we’d love to provide you with assistance.