Who Needs Bookkeeping Services?
I’ve never heard anyone say they started their business so they can do bookkeeping.
Most people start their own businesses because they love doing the work the business was set up to do. Unfortunately, that’s just a small part of owning a business.
Another important part is tracking your income and expenses so you can determine how profitable (or unprofitable) the business is. That knowledge enables you to make decisions that will help you make more money in the future.
Businesses Looking to Grow
Most businesses start out as just one or two people doing everything for the business. They do the marketing, make the sales, work with clients, and do all their own billing and administrative work.
As they grow, they reach a point where it becomes impossible for them to do everything for themselves, and they need to start outsourcing.
This is where a lot of small businesses get stuck because they’re not sure what to outsource, when, or how to go about doing it.
While a bookkeeper can’t solve all of those problems, hiring a bookkeeper should definitely be the first step for any small business that’s growing.
This is because a) the earlier you start getting your finances in order, the better off you’ll be, and b) a bookkeeper can give you a clearer picture of your income and spending. That picture can then help you decide when you can afford to take on more staff without having to worry about not being able to make payroll.
The other situation most businesses encounter at one point or another is applying for a business loan.
If you’re trying to grow your business, but you need some extra cash to help you make ends meet until you can bring in more clients, it might make sense to apply for a business loan.
When you apply for a loan, the bank will want to see your financial statements, in which case you’d better have a bookkeeper who knows what they’re doing.
Startups
Starting a new company is an exciting time, but it also tends to be a chaotic time. There’s a lot going on and a lot of pressure to make the business a success.
Having a good bookkeeper can help you decide which steps will lead you toward success, and which steps might be a mistake based on the information your money provides.
When it comes to funding, a bookkeeper can also help you get more funding by keeping your books in order and ready to be presented to banks when it comes time to apply for another loan.
After the loan has been granted and or a venture capitalist has invested, a bookkeeper can keep you out of trouble by tracking where the money from the loan/investment is going so you can prove you were not mishandling someone else’s money.
Freelancers and Independent Contractors
When you are your business, you’re on the hook for everything. You’re also more vulnerable than larger firms with a team of accountants, bookkeepers, and lawyers, and the IRS knows that. As a result, they’re more likely to audit freelancers and independent contractors.
Most freelancers became freelancers because they prefer to work in an environment without a lot of structure. Unfortunately, that lack of structure often includes their bookkeeping and their finances, which is not the way to go.
If anything, freelancers and independent contractors have a higher need to keep their books in order so they can make better business decisions and avoid the feast-and-famine cycle most freelancers tend to experience.
Need a Bookkeeping Doctor?
Whether you fit into any of the above categories, or you have a completely different business, but you still need someone to help you track your company’s finances, I can help. Just fill out this form to schedule your free consultation and see if it makes sense for us to work together.