Running a business is no small task and requires managing many moving parts. Managing your finances is just one piece of the puzzle, but it is one of the most critical! It’s easy to start feeling overwhelmed so it might be time to consider hiring a bookkeeper to give you a helping hand. Here are five telltale signs that indicate you need a bookkeeper right now.
Cash Flow Struggles
Cash flow is the lifeblood of any business. If you’re struggling to cover your expenses, it might be down to delayed payments from your customers or clients. Managing your cash flow isn’t something that just happens - it involves ensuring that money comes in on time and is properly allocated to cover your financial obligations.
If it feels like a challenge to pay VAT, corporation tax, payroll, supplier, loan payments or other financial commitments you may have, it’s a clear sign that you need professional help to keep your business running smoothly.
Outdated Systems
Relying on manual systems such as Excel or Google Sheets might have worked well for you in the early stages of your business, but as you grow, shifting to more robust accounting software is a must.
Outdated or manual systems can lead to filing errors and missed tax deadlines and they often create unnecessary workarounds and frustrating processes. A bookkeeper can help you transition to using up-to-date software that can help you avoid penalties and damage to your company’s reputation, whilst ensuring all your financial affairs are in order.
Inaccurate Reporting
If you want to make informed business decisions, then accurate financial reporting is what you need. If you find it hard to track projects, control expenses or run reports that provide real-time information, you might be facing inaccurate reporting issues.
Without robust and current data, making sound business decisions will be a challenge. Working with a bookkeeper can ensure that you have precise and timely information for better decision-making.
Distraction from Core Business Activities
As a business owner, your focus should be on running your business and growing it. If bookkeeping tasks are taking you away from your core, revenue-generating business activities or even affecting your personal life, it’s a clear sign that you need a bookkeeper.
By delegating these tasks, you can give yourself the time and space to concentrate on sales, client relationships and other critical aspects of your business without getting bogged down by financial admin.
Your Numbers are Never Up to Date
Keeping your finances up to date is essential for understanding your cash flow, knowing who owes you money and vice versa. Inaccurate or outdated financial records can lead to uncertainty and poor financial management.
If maintaining up-to-date records feels like a constant headache, it’s time to bring in a professional. A bookkeeper can ensure your bookkeeping is done correctly and give you peace of mind so you can focus on other aspects of your business.
Invest in Your Business's Financial Health
Mistakes in bookkeeping can lead to significant financial problems and business inefficiencies. As your business grows and becomes more complex, the need for accurate and timely financial management becomes even more important. If any of the signs mentioned above resonate with you, it might be time to invest in a professional bookkeeper.
Don’t wait until your financial situation takes a downturn - now is the time to act and ensure your business is financially solid. By hiring a bookkeeper, you can free yourself from the complexities of managing your business finances. Instead, you can focus on what you do best - running and growing your business.
Long White Cloud Accounting is based in Sutton, South London and serves established limited company service-based clients in the Greater London area. Led by Kath Vincent, we provide high-quality bookkeeping to keep you on top of what’s happening in your business each month. Looking for bookkeeping support? Click below to book a chat with Kath.
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