You’ve gotten over the hurdle of starting your business, you’re established now and in the main things are going great, however you never realised how much paperwork there would be, never mind the admin of all the accounts on top of that.
Didn’t you start your own business so you could spend more time doing the work you love? Helping people create new things, providing great products and unrivalled service? So why is it that you are struggling to find the work-life balance, launch that new product, develop your team and more? Be honest, are your accounts and bookkeeping taking more time than you ever thought they would?
If this is the case read on ….
1. Bookkeeping software isn’t a substitute for Experience
Software adverts make it sound easy to deal with your accounts yet nothing replaces knowledge and expertise. Are you able to set up your software correctly? Get this step wrong and you could be in big trouble as your software could be miscalculating your taxes!
Qualified Bookkeepers have the knowledge and expertise, are aware of legislation and filing deadlines? Think about it, you wouldn’t contact a bookkeeper for a hair appointment so why tackle your accounts if that’s not your thing.
2. Your books are not up to date
When you fall behind with your paperwork, your accounts stop reflecting the actual position of your business. That makes it harder to understand profit, cash flow and accurately gauge the health of your business.
Once you fall behind it is increasingly unlikely you will ever get caught up – if you don’t have the time to keep it up to date, how can you find the time to catch up! Let’s be honest spending evenings dealing with your accounts are going to take a back seat when the dog is sat there wagging its tail ready for their walk
3. You haven’t billed your customers and have overdue invoices
The minute you get too busy to bill your clients, your cash flow will suffer and you could even miss billing someone altogether. Your clients won’t pay you without an invoice and without money in the bank how will you pay your staff and your suppliers?
Billing your clients regularly and undertaking credit control is vital – keeping control of outstanding debt should enable you to take care of your bills and overhead expenses.
It’s just like being on the beach, the regular tide in of customers paying, the regular tide out of your supplier and expenses payments – no hat or sun screen required!
4. Your bank statements haven’t been reconciled
Checking your bank balance on your phone does not give you a clear picture of how much money you have. It doesn’t tell you how much money your customers owe you, how much money you owe your suppliers or highlight any errors in your accounts.
It’s important to keep your reconciliation up to date and connecting bank feeds in accounting software now allows for this to be completed daily, if you have the time. This will give you an instant view of your financial position – assuming of course everything else has been done!
5. No time to grow your business
There are only 24 hours in the day and as a business owner you are constantly juggling the work-life balance. Every hour you spend on your accounts is an hour lost on selling your products or services, developing business opportunities and client relations.
Get your work-life balance back on track – keep a log of how much time you spend on your accounts per week, then calculate how much that time is worth to you. Outsourcing is a cost effect way of dealing with your bookkeeping to enable you to grow your business.
If any of the above sounds familiar and you wish to find out more, please use the link below: