If you’re asking yourself, “Do I need a bookkeeper?” — let’s look at the signs telling you when it’s time to hire a bookkeeper.
Business owners often take on bookkeeping and accounting tasks when they start their business. It’s common for business owners to try and do everything on their own. But at some point, a business owner must delegate tasks if they want to thrive and grow — especially when it comes to their finances.
But how do you know when you really need a bookkeeper?
The answer is probably sooner than you think.
The best time to hire a bookkeeping partner is before you really need one.
One new large client or a quick influx in business could be the thing that bumps you into needing more detailed, more high-level accounting.
This doesn’t mean you need to hire a full-time bookkeeper right away.
The best option for growing businesses is hiring an outsourced bookkeeping partner who can provide what you need now and then grow with your business.
Let’s look at the signs telling you that you need a bookkeeper — and how an outsourced partner can provide the accounting support you need.
Do I Need a Bookkeeper?
If you are questioning whether or not you need a bookkeeper, here are a few signs it is time.
#1) You’re wasting too much time on bookkeeping tasks.
Business owners have a lot to do. They shouldn’t be spending their time doing:
- Weekly bookkeeping
- Month-end accounting entries and reconciliations
- Monthly financial reporting
- Payroll processing
- Vendor bill payment
- Customer invoicing
- AR collections
If you are spending too much time on these tasks, it’s time to hire a bookkeeper to do it for you so you can go back to other things that require your attention and expertise.
#2) Your books are outdated.
When you and your team are too busy to work on your books, you can fall behind. This can result in your financials becoming outdated, inaccurate, and unable to offer insights into your business.
#3) You don’t have financial visibility.
When your books aren’t updated, it will be practically impossible to use your accounting reports to gain insights about your business. You won’t be able to create financial forecasts or pull information needed for business deals such as securing funding and engaging in acquisitions and sales.
#4) You have cash flow problems.
Not having clear visibility into your finances could eventually lead to cash flow problems. When you can’t see your finances, you can’t create cash flow formulas to determine how much money is coming in and out of your business.
Related: 12 Causes of Cash Flow Issues & How to Fix Them
#5) You’re making mistakes.
The only thing worse than books that aren’t updated are books that are inaccurate. When bookkeeping and accounting tasks are managed in a rush or by people who lack the right experience, it can lead to mistakes, errors, and inaccurate information.
Related: 10 of the Most Common Bookkeeping Mistakes Small Businesses Make
#6) Only one person is responsible for your bookkeeping.
Having only one person responsible for your bookkeeping can work for a while — but it can lead to major challenges. If the responsible person is sick or busy with other tasks, no one can step in to take over. If that person leaves the organization, you are left with no one who understands how to manage your books. And worst of all, having one person in charge of your books opens up the possibility for embezzlement and fraudulent transactions.
#7) You scramble at tax time.
If you dread tax time, it’s probably because your books aren’t in order. When you have accurate financial reporting throughout the year, tax preparation is a breeze. You have access to the reports you need to easily file your taxes (and you can benefit from year-round tax planning).
#8) You have growth plans.
If your goal is to grow your business, you will eventually need to hire professionals to manage your bookkeeping. Do yourself a favor and lay the foundation now. It will be less time-consuming and expensive to work with a part-time partner now. They can ensure you have the right systems in place as you scale.
Related: Navigate Business Growth: 6 Factors That Require Your Full Attention
#9) You are a business owner, not an bookkeeper.
Business owners typically start their companies because they have a specific expertise or experience — and it’s not usually experience in bookkeeping. If you aren’t an accountant or bookkeeper, you don’t need to be one for your business.
Related: 60+ Small Business Hats You Should (& Shouldn’t) Be Wearing
#10) If you are thinking you need a bookkeeper.
If the thought of needing a bookkeeper has entered your mind, it’s likely that it’s time you need one. And the best thing is that you don’t need to hire a full-time employee. The best option for growing businesses is hiring an outsourced bookkeeping partner who can provide what you need now and then grow with your business.
Related: The 8 Benefits of Outsourcing Your Accounting
How to Hire a Bookkeeper
If you find you need a bookkeeper, here are steps to take to find the right partner for your business.
1. Define your needs. Clearly outline the scope of work and responsibilities you expect the bookkeeper to handle.
2. Identify key requirements. Specify any qualifications, certifications, or industry experience that are essential for your bookkeeper, such as Certified Public Bookkeeper (CPB), Certified Bookkeeper (CB), or Certified QuickBooks ProAdvisor.
3. Research and interview potential partners. Verify the credentials and qualifications of potential bookkeepers. Request and contact references to learn about their past performance. Ask questions that help you build trust and find a bookkeeper who will turn into a true partner for your business.
Related: 40+ Questions To Ask Your Bookkeeping Team
4. Define expectations. Clearly communicate your expectations, including reporting frequency, communication methods, and deadlines.
To start the process of hiring a bookkeeper, download this free guide. It shares what you need to know as you begin searching for and hiring a partner. It includes:
- Checklist for hiring an outsourced bookkeeper
- Questions to ask potential partners
- Checklist for onboarding an outsourced bookkeeper
Get ready to hire the right partner. Get the free guide today. 
Work with CFO2U Bookkeepers
If you are questioning whether or not you need a bookkeeper, you probably do.
See how CFO2U can offer the solutions you need.
Our monthly back office accounting provides businesses with outsourced bookkeeping that takes financial recording off your plate and passes it over to the experts. See how CFO2U can be the partner you are looking for. Schedule your discovery call with our team.
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