The Right Time to Outsource Bookkeeping for Your Business
"You can do anything, but not everything." - David Allen
Allen is the author of Getting Things Done, a best selling book on time management. You've gotten this far in your journey because you're all about getting things done -- once you put your mind to it you can do it. You realized that you can do anything. But with the constraint of time, you must also realize that you can't do everything.
This goes for every aspect of your business especially, bookkeeping. Hopefully you're already following some of the tips and processes we've outlined in previous blogs, but is there a point at which you should really delegate this task to a professional?
Let's explore some of the signals that indicate you should consider outsourcing your bookkeeping efforts.
1. You Keep Pushing Off Your Books
We get it, there are always more urgent things to do than your books. So you keep putting them off, hoping to catch up later. The problem is that when you're continuously putting your books on the back burner the major problems start to boil up—missed tax deductions, cashflow mismanagement, and even costly penalties. These are avoidable hits to your business when you outsource your books to someone else.
Ask yourself: How much longer can I afford to let bookkeeping slide before it seriously impacts my business?
2. You’re Spending Too Much Time on Bookkeeping
Do you find yourself spending a full day or two categorizing and reconciling your books every month or even weekly? When hours start to pile up along with the statements, receipts and to-do-list items, it's a sign that bookkeeping is holding you back from what you do best. Bookkeeping is vital, but your time may be better spent nurturing customers or finding new opportunities.
Ask yourself: Is bookkeeping the best use of my time or could I be creating more value for my business?
3. You Don’t Understand Your Financial Data
Reading financial data can be a complex exercise. A professional bookkeeper can help you understand your financial data, translate numbers into actionable insights, and assist with better decision-making. If the numbers seem like a foreign language, it’s time to hire a translator who can help you understand and make informed choices.
Ask yourself: Do I feel like I'm getting enough insight from my books to help me make sense of my business?
4. You’re Not Getting Paid On-Time From Customers
If your customers are consistently late in paying invoices, it could be a sign that your invoicing process isn't as efficient as it should be. A professional bookkeeper can help set up effective systems to follow up on unpaid invoices, streamline your accounts receivable process, and help you get paid faster. Not getting paid on time can lead to cash flow challenges, making it harder for you to cover your own expenses.
Ask yourself: Do you feel like payments are slipping through the cracks?
5. You’re Incurring Tax Penalties or Late Fees from Vendors
If you've been hit with tax penalties or late fees because you’re not keeping up with payment deadlines, it's a clear sign that your bookkeeping needs more attention. A bookkeeper can help you stay organized, ensure bills are paid on time, and keep track of tax obligations, so you avoid unnecessary fees. Staying on top of these deadlines is crucial for maintaining good vendor relationships and minimizing extra costs.
Ask yourself: Am I incurring unnecessary late fees and penalties which are cutting into my bottom line?
6. You Have Growth Goals but They Require More Focus
If you've set ambitious revenue growth goals, you need to focus your time and energy on strategies and activities that will help achieve them. Managing your financials can be distracting and take away from other growth-oriented tasks. Hiring a bookkeeper can help take the burden of financial management off your shoulders, allowing you to fully concentrate on business development, marketing, and expanding your offerings—all without worrying about whether your books are up to date or accurate.
Ask yourself: Am I losing focus on growth because I'm too caught up in managing financial tasks that could be handled by someone else?
7. You Want to Carve Out More Free Time for Family and Personal Life
Running a business often means sacrificing personal time, but it doesn't have to be that way. Just as you might hire a housekeeper to manage household chores or a gardener to take care of your lawn, hiring a bookkeeper can give you back valuable hours that you can spend with family or on personal pursuits - not to mention the financial value it adds to your business. By offloading the task of managing your books, you free up time to focus on what matters most in your life—whether that’s spending more time with loved ones, pursuing hobbies, or simply relaxing without the stress of bookkeeping hanging over your head.
Ask yourself: Could delegating bookkeeping help me achieve a better work-life balance, similar to how hiring help for household tasks has improved my personal life?
Checklist: Is It Time to Hire a Bookkeeper?
Hiring a bookkeeper can be a game-changer for your business. It can free up your time, ensure financial accuracy, and provide clarity that supports better decision-making. When you find yourself constantly pushing off your books, spending excessive time managing them, struggling to understand financial data, or dealing with unpaid invoices, penalties, and missed growth opportunities, it's time to bring in a professional.
Ask Yourself:
How much longer can I afford to let bookkeeping slide before it seriously impacts my business?
Is this the best use of my time or could I be creating more value for my business?
Do I feel like I'm getting enough insight from my books to help me make sense of my business?
Do you feel like payments are slipping through the cracks?
Am I incurring unnecessary late fees and penalties which are cutting into my bottom line?
Am I losing focus on growth because I'm too caught up in managing financial tasks that could be handled by someone else?
Could delegating bookkeeping help me achieve a better work-life balance, similar to how hiring help for household tasks has improved my personal life?
If you checked any of these boxes it may be time to talk to a bookkeeping professional. Reach out to us to discuss your needs and learn how streamlined bookkeeping can give you the freedom to focus on what matters most—growing your business and enjoying your life.
