Preparing For Business Growth: Bookkeeping and Payroll
An article that focuses on the fundamentals of long term business growth and success.
You've been building your business for a while now. For maybe 1 - 3 years you've been steadily adding revenue and customers. You have a solid stream of income, a solid team and several processes in place.
But you can't help but think things could be done better. Or maybe you are considering hiring full-time employees.
Well this article will share how I prepared my businesses for rapid growth and scaling by changing my bookkeeping and implementing payroll for employees and contractors.
You Can't Do Everything Yourself
Many times when people first start a business they get used to doing things themselves or micromanaging the projects they take on and the people they hire.
DON'T. DO. THAT.
At least don't do it all the time.
One of the biggest hindrances to business growth in the first 1-10 years is not knowing when you should hire people or companies to manage and do repetitive tasks or automate task so you can put your energy into the creative process. Outsourcing other tasks and investing your time in creation and business strategy is how you truly grow your business to be a well oil machined.
And the foundation of this machine is making sure your finances are accounted for and that your people are paid.
Always Run The Numbers
When I started in business years ago, I started how most people do with a spreadsheet and an accountant.
This worked great for a while but eventually I was spending too much time doing data entry every week and not enough time running my business.
I love numbers and finance but doing cash or accrual accounting is not how I wanted to spend my Sunday afternoons.
Work Smart No Hard
Eventually I moved beyond just a spreadsheet and an accountant to using accounting software. I started with Xero then moved to Quickbooks accounting software. I brought on a bookkeeper and kept my accountant.
I felt great about this system. It worked for 1-2 years and I couldn't have been prouder. But with growth comes volume.
Eventually I was virtually abusing my bookkeeper due to the volume of transactions they had to reconcile daily and weekly.
I knew there had to be a better way and there was.
Preparing for Growth and Scaling
After doing a few web searches, viewing a few demos and talking to the team I decided to move all my accounting and bookkeeping for my main business to Bench.
Unlike with Xero and Quickbooks, Bench is a full service accounting bookkeeping service.
For a flat fee they assign you an account manager to handle the reconciliation of income and expenses, inputting data from invoices to get detailed expense reporting, tracking income and expenses across lines of business and making sure invoices get settled. They even support the linking to various business bank accounts, business credits, Stripe, Paypal, Cashapp and various e-commerce marketplaces.
Due to my main company having multiple lines of business across countries, currencies, payment methods and payment terms this has saved me time and money.
It's saved me time because now I don't have to spend hours per money entering payments and expenses from across several sources. And it's saved me money by allowing me to consolidate accounting software and bookkeeping into a single expense.
Now my main business is ready for full scaling and I've even started the process of preparing Growthipedia for transition to Bench.
About Bench Bookkeeping
Bench is simple to setup and even easier to use. Mostly because once your initial setup is done, you'll have your transactions automatically loaded into the platform. Your transactions will all show up in a nice dashboard called Pulse.
And if there are any issues your bookkeeper will contact your using the platform's internal messaging systems. This messaging system is where your bookkeeper will send you messages.
And one of biggest benefits that isn't really mentioned on their website is that they have a great systems for accounting and bookkeeping that can be applied to any business.
If you're a business owner who is serious about improving your accounting and bookkeeping click the image or link below to get a free trial of the service which has a $250 value.
Once you've prepared your finances for growth the next step is making sure your payroll and hiring systems are prepared for success.
Growing By Helping People
There are few things more rewarding than building a business and being able to pay people for their time, knowledge and skills.
While being a company of one where you do almost everything is great, it's virtually impossible to grow and scale a business without hiring and employing people. And if you value people's time, knowledge, skills and other resources, pay them proudly.
This is where the payroll company Gusto really shines. Gusto not only helps you get setup to pay contractors and employees, but walk you through each step. And they feature benefits for both employers and employees.
A few of the benefits you can offer your employees and contracts are the following:
- Medical Benefits
- Life Insurance
- 401(k) plans
- College savings plans
- Worker's comp
- New Hire Onboarding and filing of documents with your state
- Paycheck advances between paychecks
But There's More
If you're an existing Bench customer, you not only get a discount on your Gusto trial, but the two platforms are partnered which allows you bookkeeper also handle the accounting for your payroll and benefits.
There hasn't been a better match since peanut butter and jelly or milk and cookies.
If you've ever dealt with payroll companies, you may know what I'm talking about. Most payroll companies are stuck in the Stone Age but this is the Bronze Age by comparison so this match is long overdue.
This is only for business owners who are ready to take their business serious but if you're at the stage of wanting ton consistent hire contractors or hire employees click the image or link below to sign up and you'll get $100.
Before you can start growing and scaling you first have to put the right pieces and tools in place so that growth happens effortlessly.
Managing your finances and how you pay people are two foundational steps that will help ensure long term success by freeing up time to focus on creating and less time on running your business.
Plus whether you plan to get a business loan, pass your business down, acquire funding from venture capitalists or use some other exit strategy, these two pieces are key.
Always run your numbers and people pay what you owe them and well.
This Post Was Brought To You By The Following: