Managing your bookkeeping on your own maybe a viable solution when you’re starting up a new business, and you can continue that way for a while. At some point, you may get a family member to take over some of those responsibilities. But the time will come when you need to consider getting outside, professional help and advice for bookkeeping and accounting matters, but the timing can be a bit tricky. You don’t want to start paying people for services until you really need to, but you also don’t want to wait until the accounting and bookkeeping logjam is interfering with your business processes. Here are some signs that it’s time to outsource your accounting processes.
Accounting is taking too much time away from business development.
Accounting is time consuming work, and time is not something that small business owners generally have a lot of to spare. Your main objective is the growth of the business, and accounting and bookkeeping are arduous and keep you from more vital tasks. When you see that the amount of time you’re spending on doing the books is keeping you from getting more clients and managing the clients you already have, it’s time to look into outsourcing your accounting work.
Payroll is getting complicated.
Many small businesses start up as one person operations, so payroll isn’t a concern in the early days. Your first employees may be family members or friends, or you may bring in help on a contract basis. Eventually, though, you’re going to start building a staff, and that means you’ll be running payroll on a regular basis. There’s more to it than just writing a check. You’ve got to calculate employee and employer contributions to taxes and expenses, and make sure those are paid to the appropriate agencies on time. That can be a lot for a small business to manage in-house. A virtual accountant can manage the entire payroll process for you, and get your people as well as the government paid accurately and on time.
Uncle Sam is knocking at your door.
For many small businesses, it’s needing to deal with the IRS or other government agencies that leads to the decision to outsource accounting. You may need to file your taxes. Or, though we shudder to think of this, you may have been called for an audit. Whatever dealings you need to have with the government, you can’t afford to make a mistake, and it’s very likely time to enlist the services of someone with expertise in these matters.
You’re in over your head with financial matters.
You’re an expert in your own business, but chances are that accounting is not one of your core competencies. At some point, keeping the books is going to get complicated. You’re also going to need to make some decisions that require expert advice and review of your financials. When you outsource to a virtual accountant, you’ll have access to a full team of professionals who can handle everything from daily bookkeeping routines to high level advice. They’ll take the workload off your plate, and leave you with peace of mind, knowing that these crucial matters are being managed by skilled professionals.