It might be a bit controversial for me to say this, but I don’t believe that every business needs a bookkeeper. Now hear me out before you call me an idiot and storm off my website. In my opinion, if you’re just starting your business then save your money for getting yourself off the ground. Or if you have the knowledge and capability to do your own bookkeeping then why not do it yourself? These are of course just two examples of times when I think you don’t need a bookkeeper. However, there are plenty of times when you definitely do need one. So here are just 9 things to look out for to help you see if you might need a bookkeeper for your business:

1. You’re not doing your bookkeeping

This is fairly obvious but if you’re not actually doing any bookkeeping then you need to get a bookkeeper! You can’t just ignore your accounts. You need to keep on top of them so that you know how your business is doing. Without that information you can’t possibly make good business decisions. And if you’re not keeping on top of your accounts then you’re probably not submitting correct information to HMRC at your year end (if you’re submitting any information at all!).

2. You’ve got no time to do anything

If you’re finding yourself run off your feet with no free time then it’s time to start outsourcing some parts of your business. A great one to let go of is your bookkeeping. You get the benefit of having an expert handle the job that is taking you hours without all the stress of hiring an employee. This frees up time for you to actually work on your business rather than in it.

3. You don’t understand what expenses you can and can’t claim for

There are lots and lots of rules around what you can and can’t claim for as a business expense. If you don’t understand what these rules are then you need to get yourself a bookkeeper that knows your line of business and can guide you correctly. Otherwise you run the risk of investigations and fines from HMRC and no one wants that.

4. You don’t know the VAT rules

Ahh the joys of VAT. There’s different VAT rules depending on what you sell, where you sell it to, where you sell it from, what you buy etc etc etc. Not knowing these rules means you’re probably charging or claiming for VAT incorrectly. This then leads to more investigations and fines from HMRC. So if you don’t want that worry hanging over your head, get yourself a bookkeeper.

5. You’re confused about capital allowances

Capital allowances are a type of tax relief that businesses can claim. If you’ve never heard of them or you don’t know the ins and outs of them then it’s time to get yourself a bookkeeper. You could be missing out on tax savings by not having that knowledge. And no one wants to pay more tax than they have to!

6. You’ve no idea how well your business is performing

If you don’t know how well your business is performing financially you can’t possibly plan for things. For example, if you don’t know if you’re actually making a profit on Etsy or not you won’t know whether you need to push more sales or move away from the platform completely. A bookkeeper can ensure your sales and fees are coded correctly so that you’ll know exactly what you’re earning on each platform.

7. You’re stressed about preparing your self-assessment

Granted there are very few people that don’t find filling in a self-assessment stressful! But if it’s keeping you up at night and stressing you out then it’s time to get yourself a bookkeeper. We can take that headache away from you leaving you stress free and sleeping peacefully (or however you normally sleep!).

8. You don’t know how to show the Etsy fees in your accounts

If you’re just using the money Etsy sends you into your bank account as your sales amount, then you are doing it wrong! You need to show the actual amount that the customer has paid as your sale amount and then the fees are shown as an expense in your accounts. You have to do it this way as otherwise you are under declaring your income and HMRC won’t take too kindly to that!

9. You’ve got bookkeeping software but you don’t know how to use it

I heard a great analogy the other day. Bookkeeping software is like giving someone the keys to a car. Yes it will get you from A to B faster than walking but if you don’t know how to actually drive it then you’re probably going to end up in a ditch if you even manage to get it started in the first place! Having bookkeeping software is brilliant but if you’re not using it correctly then it’s not worth the money you’re paying for it. You’d be better off spending your money on a bookkeeper that can use the software correctly so you can get your money’s worth out of it.

There are lots more signs out there but these are just a selection of ones to look out for. So if you recognise any of those signs in yourself then it’s time to treat you and your business to a bookkeeper!