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Business owners are resilient and resourceful, wearing many hats throughout the day. They may start a day as janitors, act as marketers in the middle, and end the day as bookkeepers. Since it is your business, you might feel the urge to work past the closing time of your shop. However, there are better plans than this in the long run.
If you continue working with such strain, you will eventually burn out. This is also not conducive to growing this into a successful business. Next, you might need to divest some responsibilities and put an expert in charge. One such is your business’ bookkeeping, which is the most vital element of your shop.
This will undoubtedly add to your monthly expenses, but you wouldn’t want to forego the accuracy of your business’ finances. Many businesses in the UK have suffered from the lack of bookkeeper services in Brentwood and elsewhere. Here is a list of 6 signs which show that your business needs bookkeeping services.
Your accounts are not updated regularly
You might be in the habit of updating your books daily at the end of a business day or during the weekends. However, as the business has grown, you find it hard to make time for it. If you are constantly postponing your bookkeeping, it is time to hire an accountant.
Every business owner needs to track their receipts and expenses to run a growing business. If you fail in this, you will have irregular cash flow problems. An accountant can sort out any backlog in your accounts and keep a record of daily transactions and expenses. This will help you make many more decisions regarding your business.
You own a booming business
When growing in revenue, your business needs to grow simultaneously in terms of staff. A growing business must cater to a larger number of clients and will need to increase its stockpile of products. More people will be required to maintain this inventory. An accountant will maintain a proper balance sheet of the added purchases and expenses.
You are not good with juggling numbers
Bookkeeping requires a certain amount of skills and knowledge. You may not be good at Mathematics and feel intimidated by the prospect of accounting. The bookkeeper service can bail out many such owners from feeling overwhelmed.
Cash flow issues
You are making many sales but can see no sign of profits. This is probably because your expenses are out-of-track with your earnings. Your accounts will tell you how much profits have been earned within a given period if they are in order. This allows you to plan your expenditures accordingly and also grow your business.
Credit-driven business
You might provide goods and services to clients on credit. Keeping track of these unpaid invoices is a difficult task. It would not be ideal for you to chase after clients who owe you money. You have other duties to fulfil in the business. A good bookkeeper service will free you of this charge and ensure all invoices are paid on time.
Bookkeeping only during tax season
Lastly, if you only pay attention to your books while filing for your taxes, you are doing it all wrong. Since you are working on your accounts at the last moment, you will make many mistakes. This can land you in hot water with the HMRC.
Also, your business will suffer financially if your books are only tended to once a year. A bookkeeper will save you money in the long run while freeing you from the burden of bookkeeping.
Concerns about account privacy
Many small business owners rely on the competency of a friend or a family member for their bookkeeping. However, this is a risky situation as this opens your accounts to outsiders who can take advantage of you. An accountant is bound by his employment contract to hide the data in your account from others.
A discrepancy in your record books
If you are not vigilant in bookkeeping, your staff can exploit you. Since the inventory records are not maintained, they can make an extra buck by thieving and selling your products elsewhere. They may even pocket the money earned from a sale in your store.
Conclusion
If you are a business owner in the UK and have identified any of the above signs, it is time to go with a bookkeeper service. If you live in the Brentwood area, you will find numerous contacts of bookkeeper services in Brentwood. Hope you have found this article helpful.
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