Hiring a New Staff Member and Knowing When It's Time to Hire

Welcome back to our series on hiring for bookkeeping firms! As your business grows, bringing on a new team member can be a big step. If you hire too early, your budget might feel the squeeze. Wait too long, and you risk burnout (I know this first-hand, working Saturdays, Sundays, and evenings)—or missing out on new opportunities. In this post, I will share the key signs that it might be time to expand your team, drawing from my personal experiences and providing some eye-opening stats. Spotting these signals early can help you keep your service top-notch and your business moving forward.

Signs It's Time to Hire

If bookkeeping and mundane tasks are taking up so much time that you or your staff can’t focus on important things—like finding new clients or planning for the future—it’s a sign to consider hiring. Spending hours on data entry or fixing errors instead of growing your business? That’s a red flag! As revenue increases, these tasks typically multiply, leading to delays or missed deadlines, which can harm client trust.

Financial Mistakes Are Sneaking In

Are you noticing more errors or having trouble keeping up with cash flow? If your ledgers aren’t lining up or cash is moving in unpredictable ways, a dedicated bookkeeper could make a big difference. Companies that hire bookkeeping help often see accuracy improve by 10–15%. And if your books are months behind, it’s time to get some extra hands on deck. Are you taking the time to provide your clients with the ever-important Three-Way Bank reconciliation? Why is that ball being dropped? It is time-consuming to produce.  

Accounting Season Stress

If tax time feels like a mad dash because your client’s records are a mess, hiring now can help you stay organized all year. Firms that add staff before what I call “high” accounting season usually have smoother filings and fewer headaches. Plus, if your business is booming—with more clients, higher revenue, or trickier transactions—now’s a great time to expand your team. The Bureau of Labor Statistics even predicts accounting roles will grow 6% from 2023 to 2033, so demand is only going up! And don’t forget, there is a shortage of exceptional accounting firms.

Your Team Is Overwhelmed

When your team’s stretched too thin, mistakes happen, morale drops, and people may even leave (turnover can jump as high as 19% in this industry). If you’re turning away clients because you just can’t keep up, that’s lost business you might have captured with a bigger team. Having a stressed team or a team that is exhausted and working overtime is not the best way to run a business.  

What's Next?

By paying attention to these signs, you’ll be able to hire at just the right time, helping your business run more smoothly and grow with confidence. Up next, we’ll dive into the costs involved and look at different hiring options. See you all next week!