You Know It's Time to Outsource Your Bookkeeping When ...
When you start your business, you have to be everything from sales to production to administration. But at what point in your small business startup should a business owner start thinking about outsourcing some of the admin tasks like accounting and bookkeeping? Here are three things you should look for that might suggest it’s time to start looking for some help in your business.
You Hardly See Your Family or Friends
You should expect to work long hard hours while you’re in the initial startup phase of your business. You are everything to your business: the lead salesperson finding customers, the person doing the work to deliver the products and services, and the person managing your business operation.
Once you get to the point where you have a healthy number of customers who are supplying you with a steady stream of business then it might be time to start outsourcing some of your administrative work like bookkeeping. In the beginning you’ll probably only need a bookkeeper for a couple of hours a week to keep up with the amount of invoicing and data entry. As your business grows you can use your bookkeeper more and more as necessary.
You Spend a Lot of Time Googling Bookkeeping and Accounting How-To’s
In the beginning you’ve got to set up and learn how to use a good accounting software package like Quickbooks. As your business gains traction you have to stay on top of day-to-day transactions, charging customers the right amount of tax, and the associated HST and other remittances. When you start hiring employees you have to worry about deducting the right amounts of EI, CPP and other expenses, deducting the appropriate amount of income taxes from your employee’s pay cheques and filing and paying your source deductions.
At the end of your fiscal year you have to stress over your year-end filing and may get the uneasy feeling that you didn’t do it right and might get penalized or you paid the CRA more taxes than you needed to.
Bookkeeping and accounting aren’t easy – to become a real bookkeeper or accountant you need to go to a college or university and earn a diploma or degree. When you hire a bookkeeper you get a wealth of expertise that can really help your business grow.
Your Business Isn’t Growing Because You’re Doing Other Things
The main job of a small business owner is to first establish and then grow your business. In the beginning you might need to do admin tasks like bookkeeping and accounting because you aren’t able to afford someone to do it for you.
But you need to make sure you’re not sacrificing your sales and marketing time and energy because this is where you’re going to find that next customer, that ideal client or that company that is going to give your business the solid foundation it needs to thrive. Finding customers, building trust and credibility, returning calls and emails … these are all things that you need to stay on top of to start building a customer base and you might not have the time you need to do this if you’re spending a lot of time keeping your books in order and this might be a sign that it’s time to start outsourcing some work to a bookkeeper.
Let Simply Bookkeeping1 Help …
When you first start your business, you can reasonably expect to work long hours through evenings and weekends while you establish your company and start selling your products and services. But at some point, you’ll need to let go of some of the admin tasks, like accounting and bookkeeping, so that you can focus on growing your business. Outsourcing your bookkeeping to a company like Simply Bookkeeping1 can be a great way to help take your company to the next level.
Simply Bookkeeping1 provides professional bookkeeping services for freelancers, solopreneurs and small business owners. We customize our services based on your needs – we only see some of our clients a few hours a month but others we see on a more regular basis. Our services are reasonably priced and we tightly track the amount of time we spend working for you so you only pay for the services you get.
To learn more about us, please visit our website at www.simplybookkeeping1.com or contact Michele Hyde by phone at (647) 668 – 9363 or by email at firstname.lastname@example.org.
Have Your Say
If you’re a small business owner and you’re thinking about outsourcing your bookkeeping, or if you’ve already made the transition to outsourcing some of your accounting, we’d love to hear from you. Please leave a comment below or share this article using the social media sharing buttons!