7 signs it's time to hire a bookkeeper
Most business owners start out doing their own books, and that makes sense when you've got a handful of customers. But there comes a point where doing it yourself costs more than it saves. Here are the signs I see most often in businesses just before they get in touch.
1. BAS time is a scramble every quarter
If the weeks before your BAS is due mean late nights, a box of receipts and a vague sense of dread, your books aren't being kept up during the quarter. A bookkeeper reconciles monthly, so the BAS becomes a quick review instead of a rescue mission.
2. You don't know if you made money last month
Your bank balance isn't your profit. If you can't say with confidence whether last month was profitable, you're making decisions without the numbers. Monthly reports fix that.
3. Payroll is eating your weekends
Pay rates, leave, super and Single Touch Payroll reporting all have to be right, every pay run. With super now due in employees' funds within 7 business days of each payday, there's even less room to let it slide.
4. Your bank feed has hundreds of unreconciled transactions
Open Xero (or whatever software you use). If the reconcile number is in the hundreds, your reports are out of date and you could be missing expenses you're entitled to claim.
5. You've had a letter from the ATO
Late lodgment notices, penalty letters or a debt you didn't see coming are all signs the admin has fallen behind. Getting your records up to date is the first step to sorting it out.
6. You're spending more than a few hours a week on admin
Work out what your hour is worth on the tools, in the shop or with clients. If bookkeeping is taking five hours a week, that's often more than a bookkeeper would cost.
7. Your accountant keeps sending things back
If your accountant spends time at year end fixing your books, you're paying accountant rates for bookkeeping work. Clean, reconciled books mean a smaller year-end bill.
What to do next
If two or three of these sound familiar, it's worth a conversation. I work with small businesses across Victoria on fixed monthly fees, so you know the cost upfront. If your books are behind, we start with a catch-up and go from there. Book a free 30-minute call and we'll work out what you need.
