Do you have a DIY Mentality when it comes to bookkeeping?
Have you ever Googled “DIY Mentality?” Unless you’re an entrepreneur, you might be surprised by the number of business-related search results. As entrepreneurs, we take pride in doing things ourselves. We’re resilient and resourceful, running lean to minimize costs and maximize profit. We take it all on our shoulders because we can. And, often, because we feel like we should.
It is highly unlikely that you started your business so that you could do bookkeeping, payroll, human resources, or recruiting. Yet here you are.
Managing your books yourself seems fairly simple in the beginning. You track your income, your expenses, your profit, and maybe even your assets and inventory. But as your business grows, so do your commitments. With so many responsibilities and limited time in the day, your DIY mentality ultimately becomes unmanageable.
Here are some signs that it is time to make DIY Bookkeeping a thing of the past.
1. You never feel like you have enough time to do the things you want to do.
Did you hear “Time In A Bottle” in your head? Just me?
Songs aside, as a business owner, you likely have better things to do with your time; things that only you can. Checking in with your clients, communicating with your employees, and driving new business are just a few things that come to mind.
2. You can’t find your desk, but it may be behind those stacks of paper.
The notorious shoebox of miscellaneous receipts, the folders of unpaid invoices, the files of documentation for completed work not yet billed, and the stack of bank and credit card statements you meant to reconcile but haven’t had the time – they take up a lot of space. And, not only on your desk but likely also in your mind. It’s stressful!
While thinking about anything “accounting” may make your head spin, not having a handle on your financials is worse. If there is one thing every small business owner has heard a million times, it’s “know your numbers.” If you are managing your finances according to how much money you have in the bank, it may be time to consider alternatives.
3. You haven’t updated your books since last tax season. And you’re not looking forward to it.
Take solace in the fact that you’re not alone. And then ask yourself how comfortable you are making big business decisions without accurate financials? Whether you’re thinking about adding staff or adding a new line of business, how do you know it’s a good time? What if you want to get funding, but you can’t run an accurate P&L? Are you identifying trends, planning for growth, and monitoring spend? Maybe not having cash on hand for your next big thing – even though you thought you would – is the motivation you need to consider outsourcing your bookkeeping. Besides, if you wait for your tax professional to do it for you after year-end, you’re probably spending more money than you need to and you’re definitely adding to their workload.
4. Speaking of taxes… Are you certain that you’re capturing and coding all your expenses to maximize your deductions on your income tax returns?
Are you sure you know all the business expenses that qualify as tax-deductible? Because even if you are accounting for every receipt, you may still be missing ways to offset your income and reduce your tax liability.
Don’t sweat it. You are great at what you do, but you’re not a bookkeeper or tax professional.
My service technicians don’t expect me to fix my HVAC issues (in fact they might charge me more if I try…)
As small business owners, we sometimes forget that it takes a village. Spend time on what you do best. Let someone else do the rest.
Do you have questions about outsourcing your bookkeeping?
Give us a call. We’re happy to provide you answers and help you determine if it’s right for you.
Since 2007, HireEffect™ has been helping organizations across various industries grow their operations. It’s like having a business partner in your back pocket. We are here whenever you need us.