Four signs you need a bookkeeper for your business
Running a successful business involves having fingers in lots of different pies. From managing employees to overseeing operations, business owners like yourself need to be a jack-of-all-trades – until it’s time to stop being one.
As your business grows, so does the complexity of managing it. With more responsibility when it comes to processes such as accounting, and larger penalties for non-compliance, working with specialists is often needed to support sustainable growth. Here are four signs it might be time to enlist the help of a bookkeeper.
You’re missing important deadlines
Business finances must run like clockwork when it comes to filing accounts, tax reporting and financial compliance. Failure to meet these deadlines can result in penalties for late filing and any errors may see you owing additional tax down the line.
A bookkeeper should help to keep one eye firmly fixed on the financial calendar and prepare documents, records and returns in advance. With your financial obligations in check, you’re free to make better use of your time as a business owner and stop worrying about fines and penalties.
You have an unstable cash flow
Cash flow is like the blood flowing through the veins of your business. It’s essential to ensure you can cover your ongoing expenses and invest in further business growth. There are various reasons why cash flow might become an issue, including delayed payments from customers and clients or a lack of income altogether.
Having the support of a bookkeeper can help you manage your cash flow better by tracking accounts payable and chasing outstanding credit. They can also create cash flow forecasts so you can understand how and why issues may arise in the future.
Cash flow is a particular issue for small businesses in the UK, especially those located in the Capital. If you operate here, it may be worth consulting with bookkeepers in London to find the ideal solution for you.
You’re not confident with business accounting
It’s okay to not be an expert at everything, even if it is your business. Asking for help with accounting isn’t a sign of weakness or failure, it’s often a necessary step to help your business get to where you want it to be. Expertise in this area is difficult to attain, so it may be worth outsourcing it.
Bookkeepers will be up to date with the latest regulations and can impart their expertise to help you make better sense of your financial situation. They’re also a cheat code for better decision-making, allowing you to see opportunities and threats that you may not have seen otherwise.
You’re not making full use of tax deductions
Reducing your taxable profit can be done with tax-deductible expenses. If you don’t know what these are or how to use them, you’re probably paying more tax than you need to! Your premises, business subscriptions, utilities, operating costs and much more are usually tax deductible, but you need to know exactly what can be claimed and what can’t.
Having a bookkeeper by your side will help to make this process easier and help you to track your expenses so you can offset the total tax you owe come the end of the financial year. Start making use of a bookkeeper today if you aren’t already!
