Day one of opening your business you do every role to keep your costs to a minimum whilst you bootstrap your business. By day you are a operations manager and salesman, by night you work on marketing, finance, bookkeeping and admin.
Slowly your business begins to grow, more of your time is spent on business operations and keeping your clients happy. You may even take an employee on. There comes a time in a growing business life where you simply do not have enough hours in the day to do the bookkeeping and finances. The end result is that it gets forgotten – unreconciled bank transactions and receipts pile up or lost – essentially you are running your business blind.
The right time to hire a bookkeeper is right before you end up in this situations and here’s why:
As your business grows, its financial needs do as well. You will need more insight, data on your profitability, cashflow management and a budget. A bookkeeper will not only reconcile transactions for you but will also provide you with information to help you with important business decisions.
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What are you good at?
As the business owner your time is best spent on what you are best at. This might be operations or sales. Do what you are good at and outsource the rest by hiring people who are best at that area. When searching for Locksmith Near me don’t forget we cover the northeast including Billingham, Darlington, Eaglescliffe, Ingleby Barwick, Middlesbrough Stockton On Tees, Stokesley, Thornaby, Yarm, and everywhere in between!
What’s your value?
How much do you charge for your time, what exactly is your time worth? Spend your time on generating more income and outsource the lower value activities such as admin, bookkeeping etc.
Obviously in an ideal world if you have funding for your business from day one then you will want a bookkeeper from the start. Access to advice, Key Performance Indicators (KPIs) and cashflow management from day one would help your business to grow much quicker.
Record Keeping?
As an e-commerce business owner, it’s essential to maintain accurate and up-to-date financial records to help you make informed decisions and grow your business. However, bookkeeping can be a complex and time-consuming task, and it’s easy to make mistakes that can have significant consequences for your business. Here are some common bookkeeping mistakes to avoid in e-commerce businesses:
Neglecting to separate personal and business finances: Maintaining separate bank accounts and credit cards for your personal and business finances can help you avoid confusion and make it easier to track expenses.
Failing to reconcile your accounts regularly Reconciling your accounts at least once a month can help you identify any discrepancies and ensure that your records are accurate.
You don’t even need to hire a full time bookkeeper. Bookkeeping is often best outsourced to firms who have teams in place and people who specialise on your industry and more often than not the benefits always outweigh the cost.
UPDATED FOR 2023
Next Steps
If you are looking for help regarding the taxes or any other aspect of your e-commerce business’ accounting, our team are happy to help. As e-commerce specialists, we can help you to build and scale your store, so it reaches its full potential.
The best time to start is now.
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Breakout E-commerce accountants and Xero specialists to supercharge your UK online business growth.
