Being an entrepreneur can be a lonely endeavor. You spend all your time creating a business and helping it grow. You can become used to doing things on your own when you put blood, sweat, and tears into building your empire.
So how do you know when it's time to seek outside help?
It can be hard to give up the control of any aspect of your business, but there comes a time when you just can't do it all by yourself.
There’s a point when you realize that you need to focus your energy on growing and on your customers. Other aspects, like bookkeeping, are better off delegated to outside sources.
So, how do you know once you've hit that mark? The following are 4 clear indicators that you've grown and it's time to seek the help of a virtual, professional bookkeeper.
You're overwhelmed
Does thinking about the state of your books cause you to panic? Do you struggle to force yourself to sit down and focus on your business finances?
You’re not alone. Cash flow causes massive stress to many small business owners.
Bookkeeping can seem almost like a foreign language and it can be hard to interpret. And, as we all know, we are far more likely to put off an activity if it causes anxiety or we think it’s unpleasant.
So, you ignore the problem which only lets it grow.
It can be easy to justify to yourself that bookkeeping isn’t important. That you only need it for your taxes, so you can just do it all at once at the end of the year.
Don’t let yourself fall into this trap. If you’re only using your bookkeeping for taxes, then you are missing out many of the important benefits it can give your business, i.e. a clear vision of market trends, predictions of issues to come, all-around easier decision-making, and much, much more
You're falling behind
When was the last time you worked on the books for your business? If that question makes you squint, then it's probably time to get caught up.
Organized and accurate finances can be a big advantage in running your business. You wouldn't try to drive a car blindfolded, so why try to run your business without up-to-date books?
It’s important to remember that your bank account balance or your credit card statement is a very small piece of the puzzle. It’s good to have that information, but making decisions based on just those numbers can lead you to disaster
Without current and complete financial information, you lose valuable insight into the health and well-being of your business. You won’t have the benefit of all that knowledge at your fingertips to help you make decisions for the future.
You don't have time
In the beginning of most small businesses, it makes sense to track your own finances. Normally, there isn’t a lot of work, or money, at the start. You can spend a couple hours per month and easily stay on top of it.
But as your business grows, there will come a time when you have to narrow down your vision. There are only so many hours in day and you need to focus on your strengths and passions.
Your time is worth a lot.
What you do with that limited time matters.
When you find yourself wishing for more hours in a day so you can get caught up on your bookkeeping, then it is time to look at taking some responsibilities off your plate.
You’re seeing errors
Mistakes happen. We’re all human. And generally people are understanding of this.
But if mistakes are starting to affect your relationship with customers/clients/vendors/financiers, then it’s time to get help.
Seeing the same problems over and over will diminish your customers confidence in you. And once you lose their trust, their business will quickly follow.
Unfortunately, the IRS also tends to get real sassy when your financial information is incorrect; it’s imperative that your records are accurate and verifiable.
Do any, or all, of these situations apply to you? If so, contact me for a free, no-obligation consultation. I can help you determine if outsourced bookkeeping is right for you.