While running your own business, you pay bills online, deposit checks with your smart phone and check your bank balance using the internet. So far you are managing quite well. Then something unexpected happens - an automatic bill payment you set up clears the bank and suddenly you are overdrawn.
You need a bookkeeper when:
- You don’t reconcile your checking and credit card accounts. Checking your bank balance online doesn’t take the place of calculating your income and expenses. A monthly reconciliation keeps track of what your cash balance should be and helps you anticipate problems.
- You are late paying your bills. You forgot to pay the rent. They never send a bill! Oops.
- Your customers aren’t paying on time. Susie says the check is in the mail. You forget to check until two months later and then you can’t find her email address.
- You are spending too much time on recordkeeping. When you are doing your own bookkeeping, but could use the same time generating more income than it costs to hire out, you are losing significant earning power.
- You aren’t spending any time on recordkeeping. A potential investor is asking to see your financial statements. Or, your tax return is due in 2 days. Yikes!
- You want to improve your profitability but don’t know how. Reviewing up to date financial information helps you find opportunities to save money. You have the information you need to make better decisions.