When should you get a bookkeeper? Well, you're probably in one of two camps, the 'Too Soon' camp, or the 'Too Late' camp. Take a look at the defining characteristics and then decide which side you're on. We'll explain the right time for you!
The 'Too Late' Camp
An important trait of those in the 'Too Late' camp is when the bookkeeping becomes something you dread and hate. It's a fine line, but running your business should be about doing the things you love and if you’re spending your time searching for lost receipts, creating and chasing up invoices – it’s time to offload and get yourself a bookkeeper. Quick!
The ‘Too Soon’ Camp
You’ve probably just started your small business or are happy plodding along with a couple of odd jobs. A business owner in this camp won’t find the demands of bookkeeping a struggle, simply because the ball hasn’t really got rolling yet. The time may come but right now, you probably don’t need a bookkeeper yet.
So, When's The Right Time?
It's really simple but the decision to get a bookkeeper has to be when the job becomes a strain for you. It isn't what you started the business for, but quickly takes over and becomes the thing you loath.
And too right! Frankly, it's not your job. But so many say - 'why not just struggle on through and keep doing it yourself?'
Contrary to popular belief - doing the bookkeeping yourself isn’t a free service! It costs time, and time is money. In almost every instance you're better off getting someone to do it for you. Don't believe us?
Seriously, do the maths yourself after reading this - find out how many hours it’s taking you to complete the bookkeeping. Then, compare it to how much you would usually make in that amount of time. Whatever your result, that’s how much it’s costing you.
Then take into account the other important factor - stress (which doesn't cost you a penny, but it does take away the love & quality from the work that you do).
A good bookkeeper helps you stop you stressing about receipts so that you can focus on where to get your next new customer from. They'll also lend you expertise on whether purchases have VAT included or not – and much more!
The best time to get a bookkeeper is a hard one to pinpoint but when you start to see your business growing, and can stand back and see that it's getting too much to handle yourself, is causing you stress or is just something you hate doing - then that's the time! If you're past this point already, act now before you hinder your business further.
Some Free Top Tips
If you’re in the ‘Too Soon' camp we thought we’d give you a few tips to help you lessen the time it takes to do the bookkeeping.
If you’re in the ‘Too Late' camp we’ve outlined a few things that we offer in our services, that hopefully will get you excited about having a bookkeeper. Maybe you’ll choose us?
1. Set Up An AccountS EmaiL ADDRESS
We all know sorting through emails and keeping track of important ones can be a nightmare! Create an accounts@ email address if you haven’t already to help you manage and redirect what’s coming into your inbox. Simple & efficient management!
2. GET THE BEST Software
Sign up for simple accounts software that also has easy invoicing. Xero is perfect for small businesses and it’s what we personally use ourselves. There’s also other things like a mobile app which you can use to take photos of your receipts. It's does more though! It automatically takes all of the important information from the receipt and imports it straight to Xero. Pretty awesome!
We love making the most of technology and giving business owners the performance data from them. That's why we offer these two things in our services, so get in touch if you like the sounds of it!
3. Combine your bookkeeper with your accountant
If you get a bookkeeper who is also your accountant then when it comes to the year-end accounts all of the information will have been sent to them already. Xero will have all of your invoices and the mobile app will contain all of your receipts, so the most amount of effort you’ll have to do is pressing the camera button on your phone - easy!
We want to always offer a bespoke fixed monthly fee, to see what suits you best - as well as unlimited support. Bring any questions you have about HMRC, Tax or VAT and we’ll offer you our expert advice.
Contact us if you want us to chat about your bespoke quote and what works best for you.
The Floor's Yours:
How much time do you spend on your bookkeeping?
If you have one, at what stage did you get a bookkeeper?
Drop a comment below letting us know! Part 3, the final installment: will be about Payroll!