Outsource your bookkeeping
Outsourcing your bookkeeping will help you run your business, and is a must.
You do not want to waste hours each month with bookkeeping as a business owner, that time can better be spent on sales and marketing.
There are several options that are very affordable, from finding someone on upwork.com, an accounting firm, or using a mix of AI bookkeeping.
What tasks should a bookkeeper perform?
Not all bookkeepers are the same and it’s important that you assess their skill and expertise. General tasks that you will want the bookkeeper to perform are:
- Recording and accounting for all receipts
- Reconciling your accounting records to bank statements and credit cards
- Preparing your Financial Statements each month
You want to limit the bookkeeper from doing every task for your business, as this could result in theft or embezzlement.
Your Role as a Business Owner
As a business owner, you are responsible for managing your cash flow and financials. Each week, month, and quarter you will have financial responsibilities. These responsibilities include paying your vendors, reviewing your bank statements, and keeping control of your cash.
Red Flags in Bookkeeping
When you are looking at your financials each month, you will want to make sure that you don’t see these red flags.
There’s a lot of expenses in ask my accountant
- Negative cash balance on the balance sheet
- There is a negative cash balance
- Your owner equity is negative
- The balance sheet doesn’t balance
- You have a negative gross margin
- You have a high number in your inventory account (and know there shouldn’t be)
As you begin to work with the bookkeeper, you will want to set your expectations of the deliverables, how you communicate, and how you solve problems together.
Do you need help finding the right bookkeeper? Let us know and we can help you with your search.
If you will be responsible for cannabis or hemp accounting and compliance (whether you’re a bookkeeper, accountant, compliance consultant, or employee in operations and accounting) and need a high-level view of cannabis accounting strategy, check out THC Finance Bootcamp.