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Six Important Signs You Need to Know When to Upgrade Your Business Bookkeeping
Here you are again, overworked, working late nights to reconcile your bank accounts. Are you spending more time doing your bookkeeping than enjoying more family time and doing the things you love doing? It could be time to upgrade your business bookkeeping system. As your business grows, your initial accounting processes won't give you a clear idea anymore. Maintaining a general ledger in a spreadsheet is too crucial for a growing Business. So, are you getting in the weeds trying to do your bookkeeping? You may be capable of saving time and money by updating to new bookkeeping software.
If this is your understanding? Then it is time to update to new bookkeeping software Some familiar red flags indicate that your business bookkeeping is not going to collapse. But, conversely, some familiar themes show a wasted time, wasted money, and absence of compliance. If some of these circumstances sound familiar: you may need to fix your bookkeeping processes.
You could be spending more time on bookkeeping than your business
Who is running your business if you have a DIY bookkeeping system taking up all your time? Many business owners spend unwanted hours entering transactions and finding their accounts have errors. All this lost time could have been spent on attracting new business or discovering new marketing ideas.
It's also significant to acknowledge the differences between an accountant vs. bookkeeper. For example, if your in-house accountant is also doing daily bookkeeping, they may be taking time away from vital business processes like payroll.
You're always behind on your business bookkeeping
It appears that you can't get ahead in your bookkeeping any longer. You will be surprised that bigger businesses have more detailed financial records. But, if you can catchup, your bookkeeping is your only way out — there is a setback. The well-being of your business will suffer if you can't get records of your accounts payable and accounts receivable when you require them.
When you attempt to do your books as an expanding organization, you will always be making mistakes. Not only are you dealing with a more significant volume in transactions, but your small business strategies may not apply anymore. Bigger businesses often need to change from single-entry to double-entry bookkeeping and make other critical organizational changes in keeping with the current.
If your business's tax periods are always in a messy
Do you find yourself constantly in a mess at the end of each tax year? Tax season means tracking: -
• Income tax rates for a business,
• Goods and Services taxes
• Tax deductions,
• Tax credits
• Capital gains tax,
• Fringe benefits tax,
• PAYG withholdings,
• More…. etc
Plus, continuing to stay compliant is the only way to evade specific government penalties. Despite the complications, lodging your taxes does not have to be dreadful. But, if it is, you are probably not using the right bookkeeping system.
Having reached the limits of your current software
Small business software has its drawbacks, including the number of transactions, staff, and clients you are permitted to track. Suppose your business bookkeeping needs an upgrade if you cannot scale within your existing system. Using small business accounting software when you are no longer a small business is asking for worry. Ideally, you will upgrade to a new system before you hit your official limit and struggle to transfer your data.
Your cash flow is unpredictable
A sound business bookkeeping system helps you strategize. For example, you should be able to estimate peak seasons, low seasons and estimate overhead costs. However, another indication that it's time to upgrade your bookkeeping is that you cannot evaluate your cash flow. While there could always be other issues at play, inconsistent record-keeping makes it more difficult to predict your accounts receivable accurately.
Having reached the limits of your current software
Small business software has its drawbacks, including the number of transactions, staff, and clients you are permitted to track. Suppose your business bookkeeping needs an upgrade if you cannot scale within your existing system. Using small business accounting software when you are no longer a small business is asking for worry. Ideally, you will upgrade to a new system before you hit your official limit and struggle to transfer your data.
If you can never get the support of your bookkeeper
Your financial records should never be a secret. But do you find it difficult to contact your bookkeeper when you have queries about a bank statement, account balances, or do you need a balance sheet? This is a convincing sign that you have outgrown the person or service that you currently have. The genuine bookkeeper will ensure that your records are available to you around the clock, not hold accounting software passwords hostage or failing to offer advice and support when you need it.
Have you outgrown your business bookkeeping system? It's wise to bring in reinforcements, whether you are trying to do it all yourself or having a bookkeeper who cannot keep up with your progress. Business Pillars is a business bookkeeping service that can support you with all your needs. Begin with basic bookkeeping needs adding new experts to your remote team as you whenever need them. We offer one free no-obligation call at https://www.businesspillars.co.nz
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