You made it! You have gone through careful strategizing, planning, and your business has launched. It has been difficult and will continue to be difficult, but it will be worth it. One thing that you can lift off your plate, however, is bookkeeping. Doing your own bookkeeping as a contractor is complex due to the nature of the business because each quarter, each week, and even each job can vary immensely in terms of operating costs and revenue. To add to that, there can be certain projects that you do on your own and others where you hire a subcontractor or even multiple!
This is very important because failing to keep your books accurate makes running your business difficult, and complicates things during tax season. Make sure that you (or even better your bookkeeper!) can understand the laws and regulations that pertain to your business and ensure that you are compliant. In addition to this, if you happen to be audited and your bookkeeping is inaccurate, you can face extensive fines, which in turn can hinder your business’s growth. The good news is that you don’t have to do it alone. A professional bookkeeper can help you with structuring your business, keeping your books clean, and give you advice on effective money management.
Outsourcing simply means hiring another party to do a task. Do not be afraid that because you outsource your bookkeeper that you will feel left out and not involved. A good bookkeeper will ensure that you’re involved in the process and are aware of what’s going on. It is important to get a bookkeeper who is transparent and takes on an individualized approach. In general, no two businesses are alike, but this is even more so true in terms of your type of business! In addition to this, when you hire someone to do your bookkeeping you can use the time that it would have taken you to do that elsewhere that’s beneficial to your business – such as acquiring new clients and/or projects.
When your bookkeeping is well taken care of, you are well prepared with the needed resources to support growth in the future. You need to be ready to expand your business ahead of time so that when the right opportunity comes around you are ready for it and are able to act upon it. Make sure that you are well set at your current level of business and finances and then prepare for more and stay prepared. As Alan Lakein put it “Planning is bringing the future into the present so that you can do something about it now.”
Now that you have gained familiarity with the concept of hiring a bookkeeper if it is something that you are interested in pursuing or discussing further, feel free to schedule your free initial consultation with us! Sound Bookkeepers are here to help!