Business owners wear many hats. It’s both a gift and a curse, really! As an entrepreneur or small business owner you can get so used to managing all aspects of the business that it’s hard to recognize when it may be time to outsource.
Bookkeeping is an essential task for any business. However, it may look different depending on the industry. Ecommerce bookkeeping has a whole set of peculiarities that differ from bookkeeping for a landscaping business, for example.
The accounting and bookkeeping advice you find online is by no means a one-size-fits-all solution, and it shouldn’t be treated as such. Getting to know the nitty gritty details of your company’s finances is a great way to keep track of exactly how your business is performing, but unless you’re an expert in the bookkeeping field, you may be overlooking some crucial areas.
The Downsides to DIY Bookkeeping
The truth is that DIY bookkeeping may be holding you back. Here’s how.
You’re Lacking Crucial Knowledge
You run a successful business because you’re the best at what you do. Well, the same applies to bookkeepers! In the same way that an average joe couldn’t stroll in off the street and match you at your own game, you can’t expect to give professional bookkeepers a run for their money when it comes to financial expertise.
This lack of intimate bookkeeping knowledge might be holding you back in ways that you don’t even realize. Perhaps you’re going through long-winded and unnecessary steps to reach your final destination, or you’re using the wrong tools for the task at hand. Maybe it’s taking you hours to locate errors that a pro could pinpoint in a matter of minutes.
This is especially important when it comes to tax season. DIY bookkeeping and tax planning leaves you exposed to the very real possibility of missing out on significant tax benefits, simply due to ignorance. Even worse, you could be unknowingly exposing yourself to penalties that could come back to bite you down the road.
There Are Only So Many Hours in a Day
As your business grows, so do your responsibilities. The reality is that bookkeeping takes time, and it’s too crucial to your operations to warrant a rush job!
Living the life of a successful entrepreneur often involves long days, but don’t lose sight of the fact that it doesn’t have to be that way. There comes a time in every small business owner’s journey where the required tasks simply can’t be managed within a reasonable work schedule (especially one that also accounts for a healthy and balanced life outside of work).
If managing your books seems to always get pushed back on the calendar to make space for other things, this is a sign that you’ve outgrown the days of DIY bookkeeping. And that’s a good thing!
Another important consideration to make is also the value of your time. Remember, you’ve pursued your chosen path because you provide a product or service that’s worth paying for. Isn’t your time best spent demonstrating that expertise and satisfying your clientele, rather than crunching the numbers?
Consider a lawyer who charges $300 per hour for their time. If they engage in DIY bookkeeping, every hour spent on managing their books is an hour spent not earning $300! When you look at it this way, outsourcing your bookkeeping is a no-brainer.
It’s No Fun!
Nobody said that running a business would be a non-stop party, but one of the biggest perks of being your own boss is getting to choose how you spend your time. So, why would you choose to spend your time on soul-crushing tasks when you could instead simply not do that?
We don’t want you to get the wrong idea here – bookkeeping is what we love to do! However, we also understand that it’s very likely not what you love to do (and you’re in the majority with that opinion). As an entrepreneur and business owner, it can be hard to stay focused on the passions that drive you when it feels like you’re getting bogged down by paperwork and financial administrative tasks.
Like we said before, there are only so many hours in a day. Try to spend as many of them as possible doing things that excite you and leave the bookkeeping to those who enjoy it!
Compliance Is Just the Tip of the Iceberg
One of the most common mistakes that comes from DIY bookkeeping is that it leads to cutting corners and doing only the bare minimum. We totally understand why this happens, but it doesn’t make it any more acceptable for a business that wants to be as competitive as possible!
Professional bookkeeping services from an experienced provider can be much more than a weight off your load – it can be a real asset to your business. Gain the peace of mind of having your financials perpetually in tip-top shape, and benefit from the countless tricks of the trade and insider knowledge that comes with a professional bookkeeper. The insights gained from the professional analysis of your financials can be crucial when it comes to making the right choices for your business.
What If You Could Have the Best of Both Worlds?
Despite these pitfalls, DIY bookkeeping does have some real pluses. It can be a great way to keep in touch with the financial state of your company, and really have a deep understanding of your cash flow and the inner workings of your business.
If you enjoy that element of managing your own books, you might benefit from AIS Solution’s new Watch my Books service. You still take on the bulk of the bookkeeping, but we’re by your side to provide the professional second set of eyes that your business needs!
Our Watch my Books service includes setting up QuickBooks (or reviewing your existing file) to ensure that you’ve got a solid foundation, as well as professional training and support from our expert team. From there you’ll handle the day-to-day bookkeeping for your business, and we’ll be there to review your financials on a monthly basis to make sure that you’ve ticked all of your boxes and everything is as it should be.
This is a perfect compromise between DIY bookkeeping and complete outsourcing – you gain all of the professional expertise of outsourcing, without sacrificing the intimate understanding of your business’ financials! Contact us today to learn more.
