5 Reasons to Hire a Bookkeeper NOW
Is keeping track of your financials the bane of your business? While you might love the work you do, invoicing, paying bills, and reviewing the financials probably aren’t your favorite tasks.
Sometimes your business financials can feel like something to avoid, like COVID or the black plague. However, bookkeeping can mean life or death for your small business. That’s why a good bookkeeper is essential! Plus, they can take on the tasks you don’t have time to do (or want to do), giving you more time in your schedule to focus on what drives you.
Here are five reasons you need to hire a bookkeeper today!
1. They keep your finances organized.
A skilled bookkeeper can organize your financials and be able to provide those financials at a moment’s notice—to investors, bankers, your CPA, and most importantly, YOU! If you are ever audited by the IRS, having organized financials will make the process easier and faster.
2. You’ll have a handle on cash flow.
Keeping track of the money going in and out of your business will help you know how much money you will have on hand to pay bills or run payroll. You’ll also know when invoices are due and have insight into cash shortfalls.
3. They can help you better understand your business.
This is key information for reviewing trends month over month and better understanding your business cycle. The analysis can help you see the performance of your company and anticipate future needs, such as cash flow, sales growth and when to hire.
4, You’ll have a better plan for the future.
When you have your financials organized, predictable cash flow, and reports analyzed, you can then start to plan for the future. You’ll be able to answer questions like, What will year end look like? What is my three-year plan? What is my exit strategy? And how do I get there knowing how my company is running today?
5. It’s the law.
Business owners are federally required to keep financial records of their business. To avoid issues, it is important to obey the law.
Ready to take charge and make sure your books are in order? Give us a call! We can review your file and let you know where you can make improvements.
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What is Fractional Accounting? Fractional accounting represents a service model where experienced accounting professionals work with multiple clients on a part-time basis rather than being employed full-time by a single company. This arrangement allows businesses to access high-level accounting expertise without the commitment and expense of traditional employment relationships. The services encompassed by fractional accounting are comprehensive and tailored to each business's requirements. These typically include monthly bookkeeping, financial statement preparation, cash flow analysis, budgeting assistance, and strategic financial consulting. Many fractional accountants also provide specialized services such as controller-level oversight, financial process improvement, and preparation for audits or investor presentations. Engagement models vary to accommodate different business needs and preferences. Some companies prefer hourly arrangements for specific projects, while others establish monthly retainers for ongoing support. Project-based engagements work well for seasonal businesses or companies facing particular financial milestones. Cost-Effectiveness: The Primary Advantage The financial benefits of fractional accounting become immediately apparent when comparing costs against traditional full-time employment. A full-time accountant typically commands an annual salary between $68,000 and $82,000, not including benefits, payroll taxes, workers' compensation, office space, equipment, and software licenses. These additional costs can easily add another $15,000 to $25,000 annually. Fractional accounting eliminates these employee-related expenses. Businesses pay only for the services they actually need, when they need them. A small business might spend $1,500 to $5,000 monthly for comprehensive fractional accounting services that would cost significantly more with a full-time employee. For businesses requiring only basic bookkeeping, monthly costs will be considerably lower. Beyond direct cost savings, fractional accounting delivers substantial return on investment through improved financial decision-making. Professional accountants identify deductions, optimize cash flow management, and provide insights that prevent costly mistakes. Many small businesses discover that their fractional accountant's recommendations save them more money than the service costs. This makes it essentially a profit-generating investment rather than just an expense. Access to Expert-Level Expertise One of the most compelling advantages of fractional accounting lies in the caliber of professionals available to small businesses. While a company might only afford a junior-level full-time accountant, fractional accounting provides access to senior professionals with decades of experience, advanced certifications, and specialized knowledge across multiple industries. Their experience working with diverse clients means they can quickly identify patterns, spot potential issues, and recommend solutions based on proven strategies from similar businesses. Fractional accountants maintain current knowledge of ever-changing regulations and industry best practices through continuing education and professional development. This ongoing learning ensures that small businesses benefit from up-to-date expertise without having to invest in training or worry about whether their internal staff stays current with regulatory changes. The strategic guidance these professionals provide helps business owners make informed decisions about expansion, financing, and long-term planning. Scalability and Flexibility Benefits The dynamic nature of small businesses demands accounting support that can adapt quickly to changing circumstances. Fractional accounting excels in providing this flexibility. It allows companies to scale services during busy periods and reduce them during slower times without the complications of hiring, training, or dismissing employees. Economic uncertainties and market fluctuations become more manageable when businesses can adjust their accounting support accordingly. Companies facing temporary downturns can reduce services to essential functions. Conversely, those experiencing unexpected growth can quickly scale up to handle increased transaction volumes and more complex financial reporting requirements. This flexibility extends to accessing specialized expertise for specific projects, such as financial modeling for loan applications or due diligence for potential acquisitions. When Your Small Business Needs Fractional Accounting Several clear indicators signal that a business has outgrown basic accounting software and DIY financial management. Transaction volumes that require more than a few hours weekly to manage suggest the need for professional support. Similarly, businesses facing complex financial situations such as multiple revenue streams, inventory management, or multi-state operations benefit significantly from accounting expertise. Specific business milestones and growth phases may trigger the need for fractional accounting services: Companies preparing for bank loans require professionally prepared financial statements and cash flow projections. Businesses seeking investors need sophisticated financial reporting and analysis that demonstrates growth potential and financial stability. Companies facing audits or regulatory scrutiny require expert preparation and representation. Expanding businesses need cash flow management, budget planning, and financial controls to support sustainable growth. Companies considering new markets, products, or services require financial analysis to evaluate opportunities and risks effectively. Making the Strategic Investment in Your Business's Future Fractional accounting represents more than just a cost-saving measure; it constitutes a strategic investment in your business's financial health and growth potential. The combination of professional expertise, cost efficiency, and operational flexibility creates a foundation for sustainable business success that few small businesses can achieve through other means. At First Steps Financial, we offer a range of professional accounting services, including fractional accounting, bookkeeping, financial advisory and consulting services, and strategic guidance. Our experienced team understands the unique challenges small businesses face and provides tailored solutions that evolve with your company. We’re here to alleviate financial stress and enhance your business growth potential. Let’s connect.
Understanding the Strategic Role of Small Business Accountants Many entrepreneurs struggle with a common dilemma: knowing when to step back from certain responsibilities and bring in professional support. You understand your business better than anyone, but the complexity of business finances requires specialized expertise that goes far beyond basic number-crunching. Small business accountants serve as far more than data entry specialists. These professionals act as financial strategists, business advisors, and operational efficiency experts rolled into one. They bring analytics to your financial decision-making process while providing insights that help you reshape how you view your business's potential. The 7 Critical Warning Signs Navigating the financial landscape of a growing business requires keen awareness and proactive planning. The following warning signs reveal critical moments when small business owners should consider professional accounting support. Sign 1: Your Financial Records Create More Confusion Than Clarity When reviewing your books feels like deciphering a foreign language, and you spend more time trying to understand where your money went than planning where it should go next, you need to take decisive steps to bring clarity back. Disorganized financial records don't just create headaches; they prevent you from making informed decisions about inventory, staffing, marketing spend, and growth investments. If reconciling accounts has become a monthly nightmare or you're unsure about your true profitability, a professional bookkeeper can serve as a trusted partner to restore order. Sign 2: Cash Flow Unpredictability Keeps You Awake at Night Successful businesses often experience the paradox of being profitable on paper while struggling with actual cash availability. When you find yourself constantly worried about meeting payroll, paying suppliers, or having enough working capital for unexpected opportunities, it's time to consider professional help. Accounting professionals excel at creating cash flow forecasting models that turn unpredictable financial swings into manageable, anticipated patterns you can plan around. Sign 3: Business Decisions Happen in an Information Vacuum Every strategic choice, from hiring decisions to product launches, should be grounded in solid financial data. If you're making important business decisions based on gut feelings rather than concrete financial analysis, you're operating without one of your most powerful tools. Professional accountants create comprehensive reporting systems that provide real-time insights into which products, services, or customer segments drive profitability and which ones drain resources. Sign 4: Rapid Growth Has Outpaced Your Systems Success can create its own hurdles. The simple systems you used initially become inadequate when transaction volumes increase or you manage multiple revenue streams. Small business accountants specialize in scaling financial infrastructure to match business growth. This ensures that expanding operations don't collapse under their own administrative weight. Sign 5: Compliance Requirements Feel Overwhelming As businesses evolve, regulatory obligations multiply. New licensing requirements, industry-specific reporting standards, employment regulations, and operational compliance demands can consume your time and mental energy. Rather than becoming an expert in every regulatory nuance, engaging a professional allows you to ensure compliance while focusing on activities that directly drive revenue and growth. Sign 6: Financial Planning Extends Beyond Next Month When your business planning involves longer time horizons, investment considerations, or funding discussions, rudimentary financial tracking becomes insufficient. Whether you're contemplating expansion, considering acquisition opportunities, or preparing for investment rounds, fractional accounting firms provide the sophisticated financial modeling and analysis that informed decision-making requires. Sign 7: You're Leaving Money on the Table Perhaps the most subtle but costly sign involves missed opportunities for financial optimization. This might manifest as poor vendor payment timing, suboptimal pricing strategies, or failure to identify the most profitable aspects of your business. A fractional professional can help you identify these hidden profit centers and cost reduction opportunities. The Fractional Advantage for Growing Businesses Fractional accounting services provide access to financial expertise without the overhead costs associated with full-time staff positions. With a fractional accountant on your team, you stay in the driver’s seat armed with senior-level expertise in your corner, ready to help you seize opportunities, cut through complexity, and gain a competitive edge. Fractional accountants often bring years of experience across multiple industries and business stages, offering insights that come from seeing diverse challenges and solutions. The scalability factor makes fractional arrangements particularly attractive. As your business grows, services can expand proportionally. During slower periods, you're not paying for unused capacity. The investment in professional accounting support typically pays dividends far beyond its cost through improved decision-making and operational efficiency. Ready to transform your business's financial strategy? At First Steps Financial, we offer tailored accounting solutions that help you turn potential challenges into meaningful opportunities. You’ve already proven you can build a thriving business; now take the next winning step. Let’s design a financial strategy that keeps you ahead of the game. Let’s connect.
