Paperwork is piling up. Bills are getting forgotten. And where is that payment from that client, anyway?
You know you need to hire a bookkeeper, but you’re just not ready. Yet you need some help. Where do you even start?
It’s time to get some of your processes and systems written down, especially when it comes to your finances. Not only will you stress less about where your bank balance stands, you’ll be able to automate some things to free up time.
There’s a handful of accounting programs out there that are perfect for the growing business, including Wave, Xero and (my personal favorite) QuickBooks Online. If you’re not ready to hire someone to help you with your bookkeeping, having one of these programs in your back pocket will at least get you started.
But there are a few things you need to know before investing in a system–and as you get ready to start using one.
Know What You Need it to Do
Not every accounting system is built the same. In theory, they should all be able to perform most of the same tasks. But the interface and usability of some systems may not suit your needs. Have a list of what you want your accounting system to do and keep it handy as you do some research.
Look online and compare products so you know what special features one system has over another. Don’t let price be your only deciding factor; ease of use and compatibility are huge components to consider. When in doubt, ask a bookkeeper!Don’t ignore your books. When in doubt, ask a bookkeeper for help! Click To Tweet
Get it Set Up Right
There’s really no point in investing time and money into an accounting program if you’re not going to set it up correctly. Connect it to your bank accounts and use categories to sort your expenses and income. Whatever system you choose should automatically sync with your bank and categorize transactions for you. Take the time to get your new system set up–or hire a pro to do it for you. Many bookkeepers (myself included) offer one-time set-up fees for business owners who want to take care of their own books, 1:1 trainings and consulting on retainer options. There truly are people available to help!
Know What You’re Doing
You don’t need a degree in accounting to handle your own books if you have a straightforward business model. But you do need to know basic practices when it comes to bookkeeping. Know how to create invoices, enter and track bills, understand your tax liability and how to put that money aside. Other things to consider include establishing a budget, calculating cash flow and the rules and regulations when it comes to taxes and invoicing–some of which might require additional training to implement effectively.You don’t need a degree in accounting to handle your books, but you do need to know the basics. Click To Tweet
Stay on Top of It
Like any part of your business, you need to stay on top of things. Look at your numbers regularly to ensure you’re saving enough for taxes and that payments are coming in on time. Every business owner should be acutely aware of the financial health of their business–even after they hire a bookkeeper.
The way you handle your books will literally determine whether or not your business is successful or has to fold. Not every business is ready for a bookkeeper at the same time. So be aware of where you are financially and, if you think you’re ready, reach out for a consultation with me and let’s start growing your business.