As a business grows, so do its financial intricacies. It’s common for many small business owners and finance directors to handle accounts receivable, accounts payable, and other financial tasks themselves in the early days. However, as the business scales, this can become overwhelming. The question then arises: is it time to hire a part-time bookkeeper? In this article, we break down the indicators and advantages of hiring bookkeeping services tailored to specific business needs.
How Do I Know When To Hire a Bookkeeper?
Businesses short on bookkeepers will experience one of the following classic symptoms:
- Frequent errors in invoicing, collections, payroll, or bill payments;
- Late sales and payroll tax filings, fines, and warning notices from regulators;
- Books that close after the 15th of each month;
- Frequent revisions to prior period financial statements;
- Poor understanding of the operating expenses; or
- Poor visibility of cash flow.
If you fit into one of these four profiles, your business is ready for a part-time or outsource bookkeeper.
1. Your time is very important
Who: Small business owners juggling multiple roles, from marketing to finance.
Why: Hiring a bookkeeper can alleviate the stress of managing finances. If you’re consistently spending hours on invoicing, payroll, or tax preparations, delegating these tasks can free up precious time. This allows you to focus on growing your business and strategic decision-making.
2. You are overwhelmed with the amount of accounting work
Who: Finance directors or controllers who find themselves stretched thin, working 50+ hours per week.
Why: If you’re constantly catching up on administrative tasks and unable to focus on strategic financial planning, it’s time for support. A bookkeeper will manage the day-to-day financial tasks, allowing you to engage in higher-level financial analysis and business strategy.
3. Attention to detail is not your strength
Who: Strategic executives lacking attention to detail.
Why: Accuracy is essential in bookkeeping. Errors in tax filings, payroll, or client invoices can lead to unhappy customers, dissatisfied employees, and significant financial and legal repercussions. A bookkeeper ensures accuracy in financial reporting and compliance, reducing the risk of costly mistakes.
4. You want to avoid appearances of foul play
Who: Business executives with external stakeholders such as partners, investors, or a board of directors.
Why: Separation of duties reduces the chances of fraud and spreads responsibility beyond you. Hire a bookkeeper to add a layer of oversight, minimizing the risk of fraud. This not only ensures financial integrity, but also builds trust among stakeholders.
[frmmodal-content class="wp-block-button__link wp-element-button" label="Looking to hire a bookkeeper? Download our bookkeeper interview checklist"]Advantages of Hiring a Part-Time Bookkeeper
As you can see, there are many situations where hiring a small business bookkeeper is the right move. However, there are other advantages that business owners and managers sometimes overlook, such as:
- Financial Expertise—Even if you’re well-versed in your industry, bookkeeping requires specific expertise. Professional bookkeepers can provide insights into cash flow management, budgeting, and financial forecasting.
- Time Savings—Automating and streamlining financial processes saves valuable time, allowing businesses to focus on their core competencies.
- Reduced Errors—Professional bookkeepers are trained to spot and rectify discrepancies, ensuring the financial health of the business.
- Compliance Assurance—With ever-changing tax laws and financial regulations, a bookkeeper ensures your business stays compliant, avoiding penalties or legal issues.
- Informed Decision-Making—With accurate financial reports, businesses can make informed decisions, driving growth and profitability.
Recognizing the signs of needing a part-time bookkeeping service is crucial for business success. Whether it’s to manage growing financial complexities, ensure accuracy, or maintain stakeholder trust, professional bookkeeping services are an investment in the future of your business.
Hire a Bookkeeper at CFOShare to Cover All of the Basics of Day-to-Day Business
Want to assess your current financial situation? At CFOShare, we offer a full suite of outsourced bookkeeping and accounting services to keep your business on track. Schedule a call now to discuss your specific needs and see if now is the time to hire a bookkeeper.
This article was written by a CFOshare employee with assistance from generative AI for rhetoric, grammar, and editing. The ideas presented are a combination of the author’s expertise, original ideas, and industry best practices.
