For several business owners, bookkeeping is more to do with tax compliances and filing VAT returns and they tend to ignore looking at bookkeeping as Mark Sheet/ Progress Report of their business. View of bookkeeping as a compliance tool can lead to several unwarranted consequences for the business.
If any of the following things happen to you, you may need the help of a bookkeeper:
✓ You do not know what Profit you made last month: Many of the business owners just concentrate on how much sales they have made but lose a complete track of expenses little realizing how much profit they have made.
✓ You are struggling for cash in spite of having good sales: Most of the business owners keep the focus on sales and are always behind increasing the sales. However, even if the sales have increased significantly, they are struggling for cash. This can be due to several reasons such as not a collection of money from customers, high closing stock, etc which business owners will not realize unless they maintain books on a real-time basis.
✓ Your phone is always ringing where suppliers are chasing for money: Since business owners do not maintain books on a real-time basis, they lose track of what is paid and what is not paid and ultimately land up getting several phone calls from your suppliers resulting in distractions.
✓ Banks are not approving your loan: After looking at your financial statements, the bank does not approve loans. Generally, this is a sign where your financial ratios are not meeting threshold what banks are looking at. A good bookkeeper always tells you about your business performance and ensures all financial ratios are intact.
✓ You are spending too much time on doing accounts entry: You are spending too much time doing accounting entry and taking your important time from your business and personal life.
If you see any of these signs in your business, then it’s a time to hire a bookkeeper