When it comes to bookkeeping, you need to be consistent. An up-to-date and accurate record of your cash flow is very useful for tracking and maximizing profitability for your business. As a startup or small business owner, you might have started out doing all your day-to-day tasks. Since it’s just you, you were also trying to keep up with all your financial transactions. Many startups start out this way, most likely due to the lack of resources during the early phases. Doing this, however, will take a toll on you and your business. Eventually, one aspect of your business will begin to suffer. By the time you notice you are overwhelmed, you can easily fall off with maintaining your books.
As a startup, you might wonder when is the right time to hire a certified bookkeeper. Here’s when you’ll know you need a professional bookkeeper.
I’m Too Busy to Work on My Numbers
As your business expands, you might find yourself doing more. You are naturally focusing on growing your sales and increasing your profits. You’ve been so busy growing your business that you haven’t had time to work on your numbers.
I Hate Numbers
One day, while trying to update your books, you realize you hate numbers. In fact, you’re actually not that good with numbers, but you were trying to do it because you were running point on everything. When your business was still in its startup phase, you figured it shouldn’t be that hard to track your numbers. All you needed to do is record all your sales, revenue and expenses. But, the more your business grew, the more you realized that bookkeeping is not exactly as simple as you imagined.
I’m Using Spreadsheets – Help!
When you decided to work your own numbers, you figured that the best way to keep track was by using a spreadsheet. You would enter all your cash flow transactions and other relevant details. You even tried to create formulas that can automatically calculate and keep track of your finances. But, you’re not exactly sure if what you’re doing is enough.
I Don’t Understand Bookkeeping
You did your little research here and there, and you had an understanding of basic transactions and processes. However, when it came to the intricacies of payroll, recording inventory, bank reconciliation, loans, reporting, etc., you were clueless. Of course, you knew that you may be able to find resources that can walk you through certain processes. But you simply don’t have the time for that.
My Books Are Far Behind
Suddenly, you realize that tax season is coming up, and you can’t keep up. You’re feeling embarrassed that your books are not up-to-date. You have copies of your financial transactions, but you have not recorded them in your books. Your books are a mess, and you have no idea where you are financially.
If you present messy books to your CPA, you will end up paying extra money to clean up your books before tax filing. This will also slow down your tax filing process.
Bookkeeping Confidential Is Here To Help!
If you’re lamenting about one or all of these common bookkeeping challenges, it’s definitely time to consider hiring a certified professional. At Bookkeeping Confidential, we provide full-service bookkeeping for small businesses and startups. We can help with all your bookkeeping needs, without judgment. We are happy to help. Connect with us, today!