Hiring an internal bookkeeper is a great move for many growing businesses. It gives you someone on the inside who understands the rhythm of your operations and can handle the day-to-day transactions. But over time, as your business expands, so does the complexity of your finances. I’ve seen this firsthand as a CPA and as the CEO of MBS Accountancy. We regularly meet business owners who are trying to help their in-house bookkeeper keep up, not realizing they’ve outgrown their current setup.
If this sounds familiar, you’re not alone. It’s easy to miss the warning signs when you’re focused on running your business. But in our work with clients, we’ve identified several red flags that almost always point to the same underlying issue: your internal bookkeeper is overwhelmed, and your business needs more robust support.
Financial Statements Are Frequently Delayed
If your financial reports are consistently behind schedule, it’s often a signal that your bookkeeper is struggling to keep pace. In my experience, when financial data is outdated, it delays decisions and puts business owners in reactive mode. You can’t confidently manage cash flow or plan for taxes if you’re flying blind. I’ve seen delayed reporting lead to everything from missed payroll taxes to budget shortfalls that could have been avoided.
Timely financials are foundational. If you’re waiting weeks or months to get updated reports, you’re likely basing major decisions on guesswork. As a CPA, I know how risky that can be. It’s not just inconvenient. It can have serious financial consequences.
Bookkeeping Errors Keep Popping Up
Occasional mistakes happen, but repeated errors such as misclassified expenses or unreconciled accounts point to deeper problems. I’ve worked with business owners who were constantly correcting their internal records, unsure why things kept falling through the cracks. When we dug in, we often found a single bookkeeper buried under too much responsibility, working without proper checks, documentation, or backup.
Errors like these don’t just cost you time. They affect your reporting, tax filings, and trust in your numbers. If you’re spotting regular inconsistencies or having to clean up mistakes, it may be time to rethink your setup.
There’s No Time for Financial Strategy
When your internal bookkeeper is busy putting out fires and entering transactions, there’s no room left for higher-level financial work. This is something I hear often when I meet with new clients. They’ll say, “We have someone doing the books, but we don’t really know how we’re doing as a company.” That’s a sign you’re missing out on the strategic benefits of strong financial management.
As your business grows, you don’t just need accurate records. You need insights. You should be looking at trends, planning ahead, and using your financials to guide decisions. But that’s hard to do when your in-house support is stretched thin and stuck in the weeds.
You Can’t Rely on Your Financial Reports
If your reports don’t reflect what you intuitively know about your business, it’s a red flag. I’ve worked with clients whose P&L reports told a very different story than their day-to-day reality. When that happens, it erodes your confidence in the numbers and makes decision-making harder than it needs to be.
You should be able to trust your financial reports. They should clarify your situation, not confuse it. If you’re constantly questioning their accuracy, it’s likely a capacity or process issue. This is something external support from an accounting firm like ours can help resolve for you.
Your Compliance Concerns Are Creeping In
When tax filings, payroll reports, or sales tax deadlines start slipping through the cracks, you may find yourself lying awake at night wondering what you missed. I’ve had more than a few emergency calls from business owners in this exact situation. They had a loyal in-house bookkeeper doing their best but simply unable to keep up with the growing list of compliance tasks.
Staying compliant isn’t optional. Falling behind can lead to penalties, audits, and reputational damage. If you’re starting to worry about compliance, that’s usually a sign your bookkeeper is worried too. It’s better to get help from a CPA firm before it becomes a crisis.
You’re Not Sure What They’re Doing Anymore
Transparency is critical in your financial operations. If you don’t have a clear sense of what your bookkeeper is working on or how your accounting processes are structured, that’s a problem. I’ve walked into client situations where everything was “in someone’s head,” and no one else knew how to run payroll, generate reports, or even find the right files.
That lack of clarity doesn’t just make things inefficient. It puts your business at risk if your bookkeeper takes leave or moves on. A good system should be able to run without being dependent on a single person.
There’s No Documentation or Process
In our firm, we build repeatable systems that ensure consistency and accuracy. If your internal bookkeeping relies on memory, sticky notes, or unwritten routines, it’s only a matter of time before something important gets missed. I’ve helped clients implement basic documentation and seen instant relief across the team.
Processes protect your business. They make onboarding easier, reduce errors, and ensure nothing gets dropped. If your internal setup lacks process, it’s not your bookkeeper’s fault. They just need the right support to build it.
You’re Growing Faster Than Your Bookkeeping Can Handle
Growth is a great problem to have, but it comes with added financial complexity. New income streams, expanded payroll, and more transactions all put pressure on your internal systems. Many of the businesses we work with reach a point where their original setup, often built in spreadsheets, is no longer enough.
I’ve helped companies in this exact situation transition to more scalable systems and structures. You don’t have to abandon your internal team, but you do need to equip them with tools, processes, and backup support to match your pace of growth.
How MBS Accountancy Can Help
As a CPA and the CEO of MBS Accountancy, I’ve built our team specifically to support growing businesses in situations just like yours. Our outsourced accounting services are designed to bring clarity, structure, and peace of mind to your financial operations. We offer cleanup bookkeeping, consistent monthly financials, and guidance from a dedicated team with CPA oversight every step of the way.
Whether you need someone to step in and take over, or just want to lighten the load for your internal bookkeeper, we’re here to help. You shouldn’t have to choose between loyalty to your team and the financial clarity your business needs. With the right support, you can have both.
Ready to Support Your Internal Bookkeeper?
Your internal bookkeeper might be doing their absolute best and still be in over their head. That doesn’t mean you need to replace them. Often, all they need is the right support to thrive. At MBS Accountancy, we regularly work alongside internal staff to handle work overflow, provide accounting or bookkeeping training, and ensure proper reporting and compliance for the financial side of your business.If any of these signs sound familiar, it’s time for a conversation. Contact us today and let’s talk about how we can strengthen your financial foundation and empower your team for what’s next.