Can I Afford To Hire an Employee or Contractor? What You Need to Know First

As you’re growing your business, you may realize you’re wanting to hire an employee or contractor. The only way to know if it’s within your budget is to know your numbers—you wouldn’t want to make an investment like this without the financial data. 

So whether or not you’re ready to bring on an employee or contractor—your numbers will answer this question for you. If you have good financial reports that are accurate and up-to-date, you'll be able to find your answer within that. 

It's important to do projections on top of that so that you have a clear outline on what your finances would look like if or when you do bring on an employee or contractor. 

If you notice a large enough net income on your P&L statement consistently including the dollar amount of what you would be paying the subcontractor or employee, that would be a good indication of being ready to hire someone.

Financial tip: Save up for bringing someone on your team, especially if they're full time. It'll help with the transition. 

If you don’t have up-to-date books and need to outsource your bookkeeping, get a free estimate. If you have your financial reports and want to get business consulting on your next steps in hiring, learn more here.