How to know when you're ready for a bookkeeper
Bookkeeping has a rap for being one of those nightmare tasks on an entrepreneur's to do list.
In fact, I just did a poll and found that the vast majority of those who answered were actually just ignoring the whole issue. Pretending it isn't a necessary part of business.
Unfortunately bookkeeping is much like dirty laundry. The longer we ignore it the more it piles up. #NoCleanUndies=LaundryTime
But in all seriousness, maybe you've been putting this off, or maybe you've been half-assing it, or maybe you've been giving it your all and you're just getting tired of it.
You're not alone. All of these are totally normal.
But it's also a sign you're ready to get a bookkeeper!
So let's go through how to know you're ready or not ready.
You can afford a bookkeeper
That might seem pretty obvious, but you don't want to just hire any ol' person to do your books. Hiring someone overseas to handle your books and have access to your bank account numbers and cards can be a recipe for disaster. So the cheap labor is out.
You can probably find someone local who is cheap, but chances are they will have a ton of clients and never get back to you when you have questions. Even worse they'll look at you like you're speaking a different language when you talk about launches, email marketing, or hiring someone to help you set up your sales funnel.
As far as how much you're making in order to hire a bookkeeper, well that really depends on you and what you value. If you want to DIY everything until you absolutely have to outsource, you will probably be better off waiting until you've hit the six figure mark.
If you know outsourcing will help you grow faster because you will be free to create and attract clients, you may be ready sooner.
In bookkeeping, cheap equals just doing the bare minimum. So if you want someone who's going to be there to support you, answer your questions, help you reach your goals, and really understand what's going on - it's going to cost a bit more. But if that sounds like what you're looking for...
You aren't doing your books or have been putting it off for months
While using the data to create success is best, just having an accurate set of books is also VERY important. Why?
Because you don't want to fuck with the IRS.
Pretending it doesn't need to be done doesn't actually make it go away...the pile just keeps growing.
You hate doing the books
So maybe you're actually keeping up with your bookkeeping, but every time you have to focus on this task it feels like it drains your lifeblood and leaves you unable to work for the rest of the day.
This is probably stagnating your growth, because you are constantly out of flow.
Trust me dear...
Your business is just getting on its feet
In those first few months (or years..no judgement!) it can feel like every time you turn around there's money to be spent. You've got a website, G Suite, social media schedulers, email marketing platforms, etc etc to infinity.
This is what we call the bootstrapping phase and you're probably making less than $60-70k per year. You've got to do it all! And while it really sucks, let this be motivation to start bringing in more money because at this point...
You're not ready :(
Your business is bleeding out
There's this amazing phenomena that happens with us humans and our spending. As our income increases our spending also increases, even if unintentionally.
If you feel like you can get this back under control on your own you should try to cut expenses and/or increase income without taking on new expenses.
You're not ready :(
If you feel like you absolutely cannot fix this and you need help or your business is going to go under in the next few months, this is where a bookkeeper can step in and help see things from an objective standpoint. You may have to get creative with funding and make sure the bookkeeper you choose can actually help you out of your mess, but in this instance...
I'm sure I've missed some scenarios here, but maybe you can see your own situation reflected in at least one of these if you are on the fence about whether you are ready for a bookkeeper.
And feeling completely confused about where to start on your own?