The importance of bookkeeping for a growing business can never be overstated. As your business expands, you’ll probably find that you are too busy to look after your business financial accounts. It’s certainly a great feeling of achievement to watch your business expand and it’s super news for you. But it is at this stage that problems can start to occur with the company accounts particularly if you didn’t get a bookkeeper in at the beginning of your journey. You’ll soon realise that your business is now too big to be handled by you, particularly if you have limited accounting experience. In this article from Team 4 Solutions with offices in East Sussex and West Sussex, we look at why you should call in a bookkeeper at the first signs you are beginning to struggle. We also examine the challenges you will face and why outsourcing your accounts makes a lot of sense.
Focus your energy on growing your business and not on doing the financial accounts
You are passionate about your business and desperate that it succeeds. Keeping those books in order will become ever more time consuming, distracting and quite frankly frustrating. You definitely will be thinking you could be doing something much more important and beneficial to the development of your business. As your business takes off, your energy needs to be used to focus on developing your new ideas and making the best business decisions. Time to hire a qualified bookkeeper.
Bookkeeping challenges of a growing business
- Cash flow – are you on top of your expenses?
- Financial reports – do you know how your business is performing?
- Payroll management – which system should you implement and what tax codes should you be using?
- VAT – do you need to register and what scheme is best for you?
- Tax liabilities – are you setting aside enough for HMRC?
- Measuring profitability and KPIs – have you considered indirect costs?
By using a bookkeeper, you will have a dedicated person to look after your business. This will help your business to grow further and they will optimise the systems you are using. In many respects bookkeepers are vital, as they will put systems in place for your business growth from a financial perspective. This will become evermore important as you take on staff and build your workforce. They will also liaise with your accountant, as this is probably something you don’t want to do.
Outsourcing your bookkeeping
If you find you are becoming time poor, it’s time to outsource your bookkeeping. By doing this, you will be acquiring the specialist skills you need without having to employ anyone. By outsourcing you will only pay for the work that’s done and you won’t have to worry about that person leaving your business or doing things inaccurately. It’s worth noting that it may take a qualified and certified bookkeeper half an hour or so to do financial tasks that would take you all day. This ultimately might be the deciding factor about whether to outsource – a simple cost comparison between how long it would take you and the costs associated with taking on a specialist. Four to five hours away from your business every week could be a high price to pay.
Answering the following will demonstrate the importance of bookkeeping for a growing business
- Can you afford the time it takes to do your own books?
- Will you meet your legal obligations?
- Could you miss out on tax deductions you were unaware of?
- Will you notice when your business should be paying VAT?
- Are you confident you are using the best accounting software for your business?
- Do you really know the ins and outs of allowable business expenses?
How Team 4 Solutions can help a growing business with its business accounts
This blog will have highlighted the importance of bookkeeping for a growing business. If you took on the task of dealing with your financial accounts in the early days, you will have learned a lot about your business and it will help you to save every penny to grow your company. However, if you now find you have no time to keep on top of the paperwork, and there is a lot, and you are far too busy to manage the books on a regular basis, it’s time to get in touch with Team 4 Solutions. With us, you’ll know exactly what’s coming into and going out of your bank account and you’ll know if you are on track to making a profit. Call us on +44 1825 763378 for more information or email firstname.lastname@example.org so that we can make sure your books are under control and your business can continue to expand. The importance of bookkeeping cannot be overstated.