How to know if it's time to hire a bookkeeper
Today we’re talking about bookkeeping. You know, the day-in, day-out slog to keep your business expenses and income carefully tracked, to the penny, with at least some categorization into what sort of deductible business expense it is related to.
At some point, you’ve surely asked yourself - is it time to hire someone to do this for me?
The answer is...maybe.
There are some people who it absolutely makes sense to hire a bookkeeper for, some people it makes absolutely no sense to hire a bookkeeper for, and some in between. If you’re not sure where you fall - read on.
Let’s start with the obvious situations:
Signs that YES, you need a bookkeeper (like yesterday)!:
- If you’re an S-Corp or Corporation (vs. LLC or Sole Proprietorship/Partnership)
- If your business has annual profit of $60K+/year
- If you have multiple employees on payroll (not contractors)
- If you deal with physical inventory (and not just as a hobby business)
- You spend more than 2 hours a week doing bookkeeping
- You keep meaning to get your books in order but always end up scrambling in January (or worse, just sending receipts to your accountant and crossing your fingers and trying not to cringe at your giant accountant bill)
Signs that NO, you (probably) don’t need a bookkeeper (yet):
- Your business is barely more than a hobby, or you’re just testing the waters
- You make less than a few thousand dollars a year in profits
- You spend less than 10 hours a year doing bookkeeping
- You love bookkeeping and don’t want to stop doing it
Did you fit in either of those groups? If you’re still not sure - read on.
Signs it *MIGHT* be time to hire someone to do your books:
- Bookkeeping is always at the bottom of your to-do list
- You want to know more about how your business is doing, but are not sure how to find out
- Your revenue is increasing, but you’re not seeing more profits - and you want to know why
- Your business’s growth is dependent on you having more time (i.e. lots of one-on-one work, or you’re the creative engine)
- You just don’t have time to deal with the books, any amount of time spent on it is too much
And the #1 sign you should hire a bookkeeper:
- It causes you a lot of stress, shame, and anxiety
What do you think? What are your thoughts on whether or not to hire a bookkeeper? I know that my own clients often find that when we start working together, they uncover areas of waste that save them a lot of money, not to mention the stress relief and the time they get back to focus on other things.
Have you hired a bookkeeper? What did you think? Tell me in the comments!