It is very common that new clients, especially those just starting a new small business, come to us for a consultation and say “I’m looking to keep costs as low as possible, I’ll do my own bookkeeping.” Of course, keeping costs down is important, especially for an up and coming entrepreneur with a brand new start-up; however, there are some very compelling reasons as to why it makes sense to hire a professional to handle the bookkeeping.
Focus on Growing Your Business
While we always recommend focusing on cash-flow, and keeping expenses as low as possible, there is a trade-off to be made when it comes to bookkeeping for your small business. You started a new venture to work on something that you are passionate about – to sell or develop a product or service. Any time that you spend managing non-core activities, such as bookkeeping or administrative work, is time taken away from selling your products and services, or business development in general.
The business case analyzing the trade-off between increasing sales versus the cost of hiring a professional bookkeeper should be quite clear. More likely than not, the impact to the bottom-line of your business will be significantly more positive by dedicating the several hours per month that bookkeeping would take you to business development instead.
Get it Done Right the First Time
While bookkeeping is not particularly difficult, just like anything else, a professional will likely be more efficient than someone who is not a specialist in the activity. Over the years, we have seen many of our clients who have attempted to do it themselves for some time come to us for help, and much of their work needed to be re-done and cleaned up.
Hiring a professional bookkeeper will ensure that your books up-to-date, and your reporting is accurate, so that you have an accurate picture of the financial position of your small business.
You Might Procrastinate
Perhaps business is thriving, and yet you have not made the change from when you were just starting out, and doing your own bookkeeping, to hiring a professional. You may be overwhelmed, or simply busy, with core business activities, and put the bookkeeping on the back-burner for some time. This will make it difficult for you to know the financial position of your business, and will simply take more time when you decide to get the books caught up.
Bookkeeping is Not Very Costly
Relatively speaking, hiring a professional bookkeeper is not a significant cost to your business. The value that you gain from hiring a professional that will do it right, on time, and allow you to focus your time on business development is certainly far greater than doing the bookkeeping yourself.
If you have any questions or would like to request a free quote for bookkeeping for your small business, contact us.