Bookkeeping may seem like one of the numerous business tasks that can easily be taken care of without external help at the beginning. With only a handful of transactions to record at most on any given day, keeping the books complete and consistently up-to-date is hardly a challenge.
However, since no business stays constant and progress is necessary, handling administrative tasks such as bookkeeping with a do-it-yourself approach can only be viable for so long. Once the workload increases and more and more business-critical duties arise, you may find yourself overwhelmed by the responsibilities that come with being an entrepreneur.
When this situation occurs, you may find that the do-it-yourself approach is becoming unsustainable as you fall behind on your bookkeeping duties. While it may be tempting to put this task off, doing so can have severe ramifications for your business. As such, it is advisable to outsource your bookkeeping needs to a specialised accounting firm. Let us share the signs to look out for that will indicate you need the help of a professional bookkeeper.
1. You no longer have enough time for everything
Over time, your business’s reputation will grow, and you will attract new clients in the process. This progression is always a welcome occurrence, but it also comes with a respective increase in workload.
More often than not, this increased workload means business owners no longer have enough time to complete their tasks within the normal working day, leading to overtime and prioritisation of which assignments are essential and which are only secondary. As a result of this reorganisation, some tasks are neglected, with bookkeeping being one of the primary examples.
2. You are slowly falling behind on your books
With an increased workload and insufficient time to juggle every assignment, your books will likely stop reflecting the actual state of your company’s finances. When this situation occurs, it leaves you blind to how much money your business is earning and makes it challenging for you to develop a sound strategy to grow your business.
Moreover, pushing your bookkeeping duties to tax season will only make the entire process much more stressful as you rush to ensure your books are in order before the submission deadline. You are also more likely to make a mistake or overlook a transaction when you are pressed for time, leading to inaccurate financial records that can have severe repercussions for your company.
3. Your business’s cash flow has become unpredictable
Without accurate and updated books, your business’s cash flow will eventually become obscure, leading to a host of issues, such as having inadequate cash to cover your expenses. Although there are plenty of reasons why this situation could occur, such as significant unforeseen expenses, insufficient client work, or late payments from clients, the fact remains that your business’s expenses have surpassed its income.
By keeping your books consistently up to date, you can ensure you stay on top of your company’s accounts payable and accounts receivable, allowing you to generate reliable cash flow statements to know how much cash your business has on hand at any given period.
4. You have already missed out on several tax deductions
When you have a habit of updating your books only when tax season is approaching, you tend to miss several tax deductibles and obvious tax write-offs because you are scrambling to complete the task at the last minute. This results in missed opportunities to offset your total business income and mitigate the tax owed.
Fortunately, a bookkeeper can help you record your business transactions, assign the right expense categories, and even identify business expenses that are tax-deductible that you might have missed out on, leading to a reduced tax bill.
At Ackenting Group, our seasoned team has years of experience maintaining the books of prestigious clients. Allow us to offer you our suite of reliable accounting services that can be tailored to suit your business’s needs. With our professional and experienced bookkeepers to assist you, you no longer have to worry about missing out on any tax deductibles, as our team will ensure your financial records are complete and accurate at all times.
Many entrepreneurs with new business start-ups often adopt a do-it-yourself approach for many of the company’s tasks, such as bookkeeping, due to the business’s limited manpower and budget.
However, this method becomes counterproductive over time as your business grows. With new responsibilities and a growing to-do list, you will soon find yourself overwhelmed, necessitating hiring a professional bookkeeper to ensure your company’s financial records are accurate and up-to-date.
If you require any assistance on accounting services, feel free to drop us an email at firstname.lastname@example.org or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.