Business owners and entrepreneurs are often too preoccupied with day to day operations to economically weigh the use of their time. However, with limited time and resources, a lack of human capital can be a deterrent to growing one's practice. Here are 3 signs you know you're ready to hire, tailored for bookkeepers and accountants.
- Stuck Doing Undervalued Tasks
While some data entry and filing is a natural part of every bookkeeping and accounting job, as an experienced bookkeeper or accountant, spending too much time on the mundane tasks may undercut the value of you and your practice. As an experienced bookkeeper, you may bill your time at $30-$100 an hour, but are caught completing tasks that can be passed down to more junior or inexperienced bookkeepers at a fraction of your hourly rate. Your time has value and so often, entrepreneurs forget that not every job/task is worth the time. Billing time for tasks that aren't worth your time can cost you as well as your client. Adding a junior bookkeeper to your practice may be the right solution.
- Turning Down Jobs
Jobs can vary by rate, but when you're running a business with a staff of one, flexibility can be hard to come by. When at full capacity it makes no sense to turn down potential jobs because you are completing tasks that are worth less than your time; at the same time, low rate jobs may be necessary if there's little or no work to be done in the foreseeable future. In any case, turning down jobs means forgoing potential revenue streams that you may be able to take advantage of with a helping hand. Although an extra full-time bookkeeper may not be necessary, the right addition to your practice may be a needed solution to balance the jobs you can take on.
- Deteriorating Quality
When you're overworked, it's easy to let things slip through the cracks. If you find that your clients are having to chase you instead of having you chase them, it may be that you are in need of a helping hand. Knowing your limits is the key to maintaining the quality of your work. Data mistypes, missing deadlines, and mismanagement can be symptoms of work overload. An administrator or assistant may be helpful in managing tasks that are out of the scope of your main practice.
Although not definitive, these are the most helpful tips to knowing when you're ready to start hiring for your bookkeeping or accounting practice. As counterintuitive as it may seem, hiring for your small practice may save you time and money. Looking to hire should be seen as the next step and opportunity for growing your small business.