Running Small Business Finances: Should I Hire a Professional?
Small Business
Oct 25, 2024
By MyFigures
When running a small business, managing finances can feel like one more task in an already packed schedule
Running Small Business Finances: Should I Hire a Professional?
When you’re running a small business, managing finances can feel like one more task in an already packed schedule. Many entrepreneurs handle bookkeeping, budgeting, and cash flow management independently, especially in the early stages. However, as the business grows, it may become more beneficial to enlist professional help. Here’s a guide on what you can manage yourself and when it might be time to bring in a professional.
What You Can Do Yourself
Basic Bookkeeping:
Recording transactions, organizing manual receipts, and categorizing expenses are essential bookkeeping tasks. With financial management tools like MyFigures, you can automate much of this process, saving time and reducing errors. MyFigures helps you generate reports, track cash flow, and categorize expenses without needing extensive accounting experience.
Budgeting and Cash Flow Tracking:
Managing a budget and monitoring cash flow are crucial for keeping your business on track. Many entrepreneurs handle these tasks in-house using digital tools that provide insight into monthly cash flow trends, project expenses, and help prevent cash shortages.Financial Reporting:
For routine financial reporting, using software to generate Profit & Loss Statements and Balance Sheets is often enough. MyFigures offers automated reporting tools, which can simplify the process and ensure accurate data, giving you a clearer picture of your business’s financial health.Tax Preparation:
For sole proprietors or small businesses with straightforward finances, tax software can be sufficient for filing annual returns. But if your business has complex deductions, multiple revenue streams, or significant assets, you might consider consulting a professional.
Indicators It’s Time to Hire a Professional
Growth is Taking Up Your Time:
As your business scales, the demands on your time increase. If you’re spending more hours on bookkeeping than on growing your business, it may be time to delegate your financial tasks to a professional.
Increased Complexity in Finances:
When your business adds new revenue streams, hires employees, or expands into different locations, managing finances becomes more complex. At this stage, a professional can ensure you remain compliant with tax laws, payroll requirements, and other regulations.Need for Strategic Financial Advice:
Beyond basic bookkeeping, a financial advisor or accountant can provide insights that help guide growth decisions. A professional can assist with financial forecasting, identifying growth opportunities, and helping you set achievable financial goals based on market trends and data.Audit or Compliance Requirements:
As your business grows, it may be required to adhere to stricter financial reporting and compliance standards. A professional accountant can help prepare for audits, maintain regulatory compliance, and ensure that your books are accurate and up-to-date.Planning for Long-Term Goals:
For small business owners with big visions, a financial professional can help create a financial plan that aligns with your goals, whether that means scaling your operations, preparing for a business sale, or seeking investor funding.
How MyFigures Supports Your Financial Journey
Whether you’re handling finances yourself or working with a professional, MyFigures provides tools that simplify cash flow tracking, generate detailed financial reports, and offer insights into your business’s financial health. With automated reports and customizable cash flow projections, you can make informed decisions about your business’s future—regardless of whether you manage finances independently or with professional support.
Know When to Bring in the Experts
Managing finances is an essential part of running a small business, and many entrepreneurs successfully handle their own bookkeeping and budgeting. However, recognizing when it’s time to seek professional help can allow you to focus on what you do best—growing your business. By using tools like MyFigures and keeping an eye on your business’s needs, you can make informed decisions that support your long-term success.