When is it time to outsource financial management?
Q: Dear Ruchi, as a business owner I often find myself managing just about everything. Being so busy, I worry I am not accurately tracking my books and managing my finances properly. Plus, to be honest I always become a little paranoid around tax season and worry that I am missing something important. When do you know it’s time to hire/outsource your bookkeeping or financial management if it’s not your core business?
A: I hear you! To hire or not to hire is a tough question and one I also struggled with when I first started my business. It can be nerve wracking to hand over responsibilities even though you know it will lighten your load AND be better for your business in the long run. If you’re struggling to decide whether it’s time to hire a bookkeeper or financial manager, keep reading. Below are 5 reasons it may be time to outsource some assistance in this department.
You’re behind on your books.
Perhaps you “hate dealing with the numbers” or maybe you don’t make the time. Regardless, up-to-date books mean more accurate financial statements. Without these, there is no way to gauge the financial health of your business.
You have unpredictable cash flow.
An accurate pulse on cash flow is very important, no matter what stage of business you’re in. Making sure that every penny coming in/out is recorded accurately will play a big part in your financial success. Sometimes, it takes a partner to help you see the full picture in order to plan ahead to make informed decisions about your money.
Your sales and profits aren’t matching up.
Are sales coming in yet you still don’t feel like you’re making a profit? And where is all of that cash going? If your books are off, it will cause rifts in your overall finances. A Profit and Loss statement, a Balance Sheet, and a trusted accounting software are a must in this case.
You’re missing important tax write-offs.
Having a professional’s eye on your finances is going to save you money in the long run, help you avoid IRS penalties and underpayments, and keep an eye on additional write-offs you may have missed.
You dread tax season and bookkeeping feels like a chore.
We’ve all been there. Tax season isn’t exactly a walk in the park. With something as important as taxes and income, it’s best to put this in trusted hands and release related stressors.
If any of the above sound like what you’re experiencing, it’s time to hire. That’s what the professionals are here for!
Here’s to your prosperity!
Ruchi