- Learn the warning signs that your bookkeeping methods aren’t working out.
- Find additional considerations to think about before continuing to manage your books.
- Learn the value of surrounding yourself with professionals.
It's almost a prerequisite for entrepreneurs of all types to have that can-do spirit. That sense that nobody else sees things quite like they do so, whatever it is they want to accomplish, it becomes something they know they'll have to do themselves. In a lot of ways, this is an asset. It's a big part of what has contributed to your success thus far. On the other hand, this type of mentality can certainly get people into trouble when it comes to the day-to-day necessities of actually running a business - with managing your books being chief among them. While there may be a time when you can handle your books yourself, that time will likely pass. There are a few key warning signs to watch out for that will signal when that becomes the case.
DIY Bookkeeping Warning Signs: Breaking Things Down
Maybe the most immediate sign that you should stop doing your books involves situations where you feel like you're constantly dealing with last-minute tasks and missed deadlines.
Filing your taxes late because you were too overwhelmed during the year is one thing. Having this crop up multiple years in a row is another matter altogether. Likewise, if you don't consistently reconcile your books at the end of every month, you could wind up in a situation where you think you have access to more money than you do, or you're experiencing cash flow issues without realizing it.
Not keeping up with these tasks because you "didn't have enough time to do so" isn't an excuse. It's a major indicator that bringing in someone else to do the job properly is time.
Speaking of not having enough time, this is also another warning sign that you should stop doing your books - albeit from a slightly different perspective.
If you're still trying to handle all of your bookkeeping, it's safe to say that it's probably taking you far longer to complete straightforward tasks than it would an expert. Every minute that you're focused on this is a minute that you're not making money for your organization. Simply freeing yourself from the burden will allow you to focus on more essential matters. This will give you the peace of mind that only comes with knowing that the financial elements are being handled by someone with the right expertise.
Additional Considerations About Managing Your Books
Another major asset that most entrepreneurs share is confidence. When it comes to their competitors, for example, they know that while there may be a lot of other companies who do what they do, nobody else does it quite like they do.
That segues directly into another one of the warning signs that you should stop doing your books: you completely lack confidence that anything is accurate in terms of your financials.
You're not 100% sure that all of your invoices are being paid. You have no idea how much money is coming in versus how much is going out. You're not sure if you're staying on top of deadlines or if you're woefully behind. You know there are no immediate issues to deal with - but you're not sure if that's through luck or by design.
If you don't have an accurate understanding of your business's financial situation, you can't begin to make decisions with confidence. That will quickly lead to you making the wrong decisions. This can only serve to put further financial stress on your organization if you're not careful.
For many, this will begin by having the confidence that their books are accurate and that they have been properly closed at the end of each month.
Surround yourself with professionals
In the end, think about the situation like this. You probably got to the position you're in today by surrounding yourself with professionals. You need those who bring a particular skill set that you lack and who fill a void you possess. Why, then, should the financial side of your organization be any different? Have you already noticed any or even all the warning signs outlined above? Then it's absolutely in your best interest to enlist the help of a professional moving forward. The consequences of not doing so could be equal parts disastrous and long-lasting.
Want more information about the warning signs that indicate you should stop managing your books? Looking for answers to any other questions that you may have? Call Fiducial at 1-866-FIDUCIAL or make an appointment at one of our office locations to discuss your situation.
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