As businesses grow this question will eventually get asked; when is it time for bookkeeping help? What specific events triggered this question and how long the business has been operating prior to asking always results in several long answers. I'll try and summarize a few of these answers from recent inquiries Salt Lake City Bookkeeping has received. Ideally, all small business owners would realize that bookkeeping is the first thing you do when you make the decision to be in business and work for yourself. I once thought bookkeeping would be started once the business bank account gets opened. However, I've shifted my thought process on this because it should happen even sooner than that since the owner usually is using personal funds to get things started. Anyways, only a small percentage of our clients have reached out prior to starting their business, so we rarely see this proactive approach. A majority of small business owners don't realize the importance of bookkeeping until a certain event has happened or they realize wearing too many hats is negatively affecting their business.
Your Small Business Went Through An Audit
Sometimes it takes an event such as an audit to get the mindset your small business needs a bookkeeper. No one likes audits; in fact, I don't even like typing the word audit. An audit can be for many reasons, maybe it's a labor audit to check that 1099s aren't being abused, maybe a fair labor audit to make sure employees are getting proper overtime, could be for under paying Sales Tax, Restaurant Tax, and the list goes on and on. No matter what type of audit, they all have the potential to carry large price tags. Not only will the business have to pay for the past amounts owed, but also fines and interest. I've found that these fees and interest would have covered the cost of having us as your bookkeeper. Usually it takes one audit and the business owner or manager realizes they don't want to sit through another one ever again so it might be time to get serious and hire a bookkeeper.
We have actually had great success working with the IRS when it comes to audits. A few clients have been audited in the past and they all have had positive end results. It's great telling the business owner that we are able to work the IRS and they don't need to stress about it.
Your Employees Have Stolen From You And Your Business
As small businesses grow, the owner usually comes to conclusion that hiring more employees
is the only sane way to handle growth. As the amount of employees grow, the small business owner or manager usually realizes not all employees will be as devoted as them, nor will they treat the business as their baby. This is sometimes obvious in certain actions such as poor customer interactions, not wanting to working on weekends and nights, or even worse - theft. Having a dialed bookkeeping system can eliminate such actions as theft. Salt Lake City Bookkeeping often gets contacted by a business owner after they think theft has occurred. They can't prove it, but they think it happened. What checks and balances does your business have in place to make sure the daily sales report cash sales actually hits the bank? Each time cash is received, paid out, etc. there better be a legit paper trail. If not, the bad in some people can lead to stealing. Every penny better be in the bank, safe, or register at all times and our bookkeeping services can make this happen.
Why wait until an audit happens to get a bookkeeper? Or why wait until a jerk of an employee steals from you and you can't pay yourself? Our services can reduce stress and save you money in the long run. Reach out to learn more.