What if you could use bookkeeping and quality accounting to increase your business value? Well, with a little effort on the front end, you can unlock some valuable insights and reduce administrative tasks that will improve your bottom line. It all starts with the financial health of the business and high-quality bookkeeping. The truth is small business owners that keep accurate, well-organized books have better insights into their business. Quality accounting and financial insights help you make better decisions to drive growth and scale. For many business owners, outsourcing their bookkeeping is the best way to ensure their business measures up.
When do you know you are ready to hire a bookkeeper?
Here are a few signs that it’s time to outsource your bookkeeping:
- Your revenue is growing, but your profits are lagging.
- The number of bookkeeping transactions are increasing and keeping up with your books seems to require more and more of your time.
- Year-end tax planning is stressful or messy. You receive way too many emails from your tax accountant. The accountant’s bill is too high because they have to clean up your books.
- You’re too busy that you don’t send out invoices right away and cash flow suffers.
- You are ready to hire employees or subcontractors. Hiring staff or subcontractors increases the business complexities and you’ll need to have your finances in order. A bookkeeper will assist in keeping you compliant and organized.
- Your customers pay slowly, and you don’t have the time or inclination to chase them. Remember the saying “Cash is King”? Spending time on collecting cash is important, but should the CEO be doing it? Separating the business’s face from the debt collection arm can bring in the money you need without damaging the customer relationship.
- You can’t seem to forecast your cash flow. Sometimes bills are due and you lack the cash to pay them. A quality accountant will be able to align your costs and cash.
What should you be looking for?
OK. So, you’ve decided you need a bookkeeper. Here are some things to look for when narrowing down the list of potential bookkeepers.
- Credentials: Staff that is comprised of CPAs, accountants, or controllers that have experience managing daily transactions.
- Entrepreneurial spirit: There are plenty of “just ordinary bookkeepers” out there. You want those who’ve actually been entrepreneurs themselves and know what’s required to run a successful business.
- Security: Someone who is capable of conducting your business online safely and securely.
- Efficiency: High-quality bookkeepers should be demonstrating proficiency with multiple accounting software packages and programs.
- Consistency: Produce timely monthly financial reporting and insights to drive business decisions.
- Day-to-day partner: Seek bookkeepers that can manage day-to-day activities without significant oversight. One purpose of having a bookkeeper is to give you more time to run your business and do what you love.
- Attention to detail: If a bookkeeper sends you unsophisticated emails filled with grammatical errors, that’s not a good sign. You don’t want to worry if they would misplace a decimal point, as well.
How do you choose?
Now, you’ve done your research and found a few potential bookkeepers based on the criteria listed above. Next, you need to choose the best-fit bookkeeping partner. Take your time and vet each potential choice carefully to find the best fit for you and your business. Here are a few tips.
- Don’t base your choice solely on price. A bad bookkeeper will end up costing you more in the long run.
- If you’re already using bookkeeping software, then a firm that has used the same software might be a good choice, but not a deal-breaker.
- Are you a personality fit? Choose someone or a firm who communicates with you clearly and in the way you prefer.
- Choose a person or firm with a wide range of financial expertise that can support you throughout your business life. Think start-up through exit phases of your business.
- Consider your own process, preferences, and schedule vs. how that meshes with their processes. (Note: we will be 100% remote with maybe a quarterly check-in)
- Check references.
A good bookkeeper is critical to a growing business. They provide you with accurate data for making decisions, managing cash flow, and providing monthly insights so that you can effectively run your business, pay your bills on time, and sleep well at night. They also can free up your time for managing your business and save you money through their knowledge of accounting and key drivers for growth. Contact us today to see how Virtuous Partner can align your business to achieve profitability.