Few Warning Signs You Need To Hire a Virtual Accountant

1. 9 Warning Signs You Need To Hire A Virtual Accountant Exciting innovations that can change the world www.chakrapartners.com

2. Are you procrastinating about whether to hire a virtual accountant or bookkeeper? Here are nine very common warning signs that you need one or the other.Many small-business owners start out trying to minimise their outgoings by doing many tasks themselves. They’re energetic, ambitious and love to “control a tight ship”.Inevitably, their responsibilities and workloads increase as their businesses expand. The do-it-yourself (DIY) approach often becomes unsustainable as the number of hours they work increases to cope with the extra burden. Nowhere is this more evident that DIY accounting. 02 www.chakrapartners.com

3. 01 02 Familiar Constraints With DIY Accounting Your trusted friends – Excel and on-line templates – are enough for you to begin with. But as your business expands, so does the paperwork. You’ll have more invoices to send out, more bills to pay and more bank transactions. You might even have GST, VAT or sales tax returns to complete. Managing your own bookkeeping may be easy when you first start. You might have just a few invoices to prepare and send out; a handful of bank transactions to reconcile and only a few bills to pay.

4. 01 02 Time waits for no-one. Not even busy small-business owners. Expanding business means more customers and therefore more invoices to be prepared COMMON SIGNS YOU NEED TO HIRE A VIRTUAL ACCOUNTANT much more administration and bookkeeping to attend to. www.chakrapartners.com

5. The “To Do List” Never Gets Any Smaller. www.chakrapartners.com

6. 01 02 ADVANCED ARTIFICIAL INTELLIGENCE You Have No Time For Business Development You Miss Important Tax Deductions www.chakrapartners.com

7. Many business expenses can be legitimately deducted from your income. Expenses, such as home-office expenses, telephone and internet, motor vehicle expenses and much more can be claimed to reduce your tax bill.The chances are that many DIY accountants have omitted a few tax deductible expenses because they haven’t tracked them. It’s very easy to overlook them if you’re scrambling at the last minute to collate the information you need to update your accounts.Fortunately. If you’re managing your own accounts, you’re probably taking longer than a more qualified person. But, it’s also inhibiting you from growing your business and increasing your income.Important activities like business development, marketing, talking with customers, etc might be being ignored.Determine how much time you spend on your bookkeeping. Then consider what critical business activities you could focus on if you freed up that time by hiring a virtual accountant. www.chakrapartners.com

8. YOU’RE NOT A BOOKKEEPER Chances are you started your business using the skills and experience you gained over the years.. www.chakrapartners.com

9. Do you wait until tax season to update your accounts? Do you begrudgingly send your excel cash book, bank statements and receipts in a shoe-box to your accountant? Is your only interaction with them returning your signed tax return? “IT’S TAX TIME – I NEED TO UPDATE MY ACCOUNTS” www.chakrapartners.com

10. How often do you ignore paying yourself at the end of the month because you’ve run out of money?Of course, there can be many valid reasons that cause this, such as slow-paying customers, unforeseen overheads, insufficient customer works, etc. Your Cash Flow Is Unpredictable www.chakrapartners.com

11. CONCLUSION DIY accounting serves many small business owners reasonably well when they first start out. But eventually, a DIY approach becomes counter-productive. As businesses expand, the intensity and scope of activities inevitably increases. www.chakrapartners.com