Question # 34: Do I need a financial team?
Do you have a team of people that you have hired to serve as your financial advisory team?
The bigger your business gets, the more you need a solid financial team behind you.
Let me break this down for you so you know who you need and when.
When you first start out in business, a bookkeeper and CPA are a very important part of your team.
One of the first people you need to bring on to your team is a CPA. This important individual will advise you on the best way to start your business, the filing structure such as LLC or Corporation. They will advise you on ways for you to save on your future taxes on all that beautiful profit you will be making.
Make an appointment with your CPA AT LEAST every 6 months - not just at tax time. Bring your financial statements and talk about how your business is doing. Ask questions and get their best advice. Share with them how much money you are planning to make, spend and keep in the next few months.
Next, you should hire a bookkeeper to do your books. I know I know … you are small and not making much money so why incur the cost? I can tell you from experience, every bookkeeping mess we clean up at PIVOT starts with “I didn’t hire a bookkeeper so I kept using my spreadsheet and bank statements and now I am in trouble.”
Or my personal favorite: “it’s tax time and I only have bank statements to give to my accountant.”
If I had a buck for everytime we hear that, I could buy myself a TESLA.
Here are 5 signs it's time to hire a bookkeeper:
You are strapped for time. Time is a resource we cannot renew or stockpile. ...
You're missing things. ... deductible expenses and receipts
You're behind. ... entering your numbers, reconciling bank statements, etc.
Taxes are torturous. ... because the data is not at your fingertips.
Profits aren't increasing.