Don’t ignore these 4 signs it’s time to hire a bookkeeper
As small business owners, we often start our ventures managing our books ourselves. However, as businesses grow and become more successful, so does the ever-growing list of things to do. For many, this means leaving tasks like filing the annual tax return to the last minute, or not keeping track of your finances correctly, leaving your business in a sticky situation.
If you’re a small business owner who is unsure whether to hire a bookkeeper or not, here are four signs that you need an extra helping hand – so that you and your business benefit.
1. You have no time to invoice clients or chase payments
No matter what type of business you run, profit is important. As your business grows, so too will the number of clients and the number of invoices you need to send out. However, if you find yourself being too busy to send out invoices or chase late payments, your cash flow will inevitably suffer, and that can have a knock-on effect on your ability to pay your staff, suppliers and other bills.
If you have work which needs to be billed piling up, and your invoice system is a mess, consider that a surefire way to tell that you need to hire a bookkeeper. Not only will this ensure your cash flow doesn’t suffer, but it will also help to maintain a good relationship with your clients if you have to chase late payments.
2. Your books are always outdated
Tracking your cash flow is an essential part of running a business. It allows you to have a clear handle on incomings and outgoings and ensures you can then plan effectively. If you have a mound of paperwork waiting to be tackled and only have a vague idea of the numbers important to your business, you will hugely benefit from hiring someone else to complete this task for you.
If your books are constantly outdated, you will have no firm idea of the state of your finances, which makes managing money difficult and could lead to greater issues such as over expenditure which may threaten the survival of your business.
3. Your tax return is always filed last minute
No business owner would name filing tax returns as their favourite job. However, HMRC is cracking down on business owners who submit late filings and missing the deadlines will result in your business being liable to pay fines and penalties. If you are often rushing last minute to get your tax return sent off in time, this is a clear sign you would benefit from hiring a bookkeeper. Completing your form at the last minute also means you could be making mistakes and overpaying.
4. You are overpaying on tax
According to one study, 1 in 6 business owners overpay their tax bill. The most common reason for this is because of how complicated filing a tax return is. Some people may be fantastic at the product or service that they offer, but numbers and bookkeeping simply isn’t their thing. Given how common overpaying your tax bill is, you should consider hiring a bookkeeper if this task is complicated and time-consuming for you. After all, if you overpay your tax bill, you are putting your hard-earned money into someone else's pocket.
HiThrive offer a professional, friendly and personal bookkeeping and payroll service.
We work with you to ensure that your books are always up to date, and important deadlines are always met. Let's arrange a chat to discuss how we can best support you and your business.