You are turning down work.
You are spending so much time looking for receipts, tracking down invoices, and doing data entry that you have less time for your clients and less focus on your craft. No one starts a creative business to sit behind a desk and crunch numbers. Bookkeepers take over these tasks to free you up to do what you do best: be creative.
You can't tell if your business is profitable.
You are getting clients. You are able to pay your bills. Money is coming in and going out. But are you making a profit? Are you generating enough income to buy more inventory, lease a new office space, or take on employees? To answer these questions you need a thorough understanding of your cash flow. A bookkeeper will analyze your income and expenses and produce helpful reports to show a clear picture of your financial health.
You have an accountant, but you don't understand their language.
Around tax time you begin getting requests from your CPA that seem to be written in code. P&L? Cash Flow? Depreciating assets? Accounting terminology can be a pain point for many individuals and businesses in the creative industry. Fortunately, a good bookkeeper will clearly explain what each statement is reporting on and organize everything you need to hand over to your tax preparer.
End-of-year tax bills always come by surprise.
One of the biggest challenges we see from our solopreneur and small business clients is a lack of preparation when it comes to tax season. Running your own business comes with many benefits, but also a self-employment tax than can be higher than expected. A bookkeeper will keep you informed and help you manage this expense throughout the year.
You can afford a bookkeeper.
The idea of pawning off your data entry to someone who is ready and willing is highly attractive to most business owners. But before you sign a contract, make sure you have the available budget to hire a professional. As a good rule of thumb, if you can cover your monthly recurring expenses, and have a little left over, you are probably in a good position to consult a bookkeeping service. It's true this is an added expense, but the financial guidance bookkeepers provide in areas of money management, collecting payments, budgeting, and efficiency will actually save you valuable time and money.