It’s always hard to decide when to pay someone to do something for you and what you can do yourself.
For my wedding, I made the boutonnieres for the groomsmen and designed the centerpieces myself. But I didn’t try to sew my own dress (I am not skilled in dress making!) and I hired a professional to take our pictures. There were some things I was comfortable doing, that I was skilled in, and other things I knew were worth the money to make sure they were done well. I wanted beautiful pictures of my wedding for years to come, and the pictures were worth more to me than the money it took to hire the photographer.
Boutonnieres made out of baseballs for my baseball loving husband 🙂
Your business is the same way. It comes down to what you put value in.
There are some things you can do yourself, maybe designing your website or writing blog posts, that you are skilled in and are willing to take the time to do on your own. (Or maybe designing a website is the most frustrating thing in the world to you, and it is worth your sanity to pay someone to do it!) There are other things that you want to be sure are done well, and you value them more highly than the money they cost.
First look excitement!
In front of the “dandelion fountain.
I humbly suggest that for most businesses, bookkeeping falls into the second category.
You may be able to do it yourself, but for a beautiful, lasting, memorable job – like my photographer and his excellent pictures – hiring a bookkeeper is a great decision.
Here are five reasons why having a bookkeeper is worth the money.
I’m indebted to Janice at smallbusinessbc.com for her thoughts on the matter.
Reason 1: Accurate Profit Margins
Thirty percent of new businesses are estimated to fail in the first two years. Don’t let that be you! A great bookkeeper will help your small business survive, because they will keep a close eye on your profit margins. The last thing you want to do as a small business owner is run out of cash, and end up owing more that you’re bringing in. When your business books are up to date and accurate, you can quickly see what your margin is, and your bookkeeper can help you find ways to leverage those margins for greater cash flow.
Reason 2: Room to Breathe
As a small business owner, you have to do it all. You might be the receptionist, janitor, producer, and salesman all rolled into one! And don’t forget office manager and accountant! When you are wearing so many hats, the day to day data entry and expenses can get neglected, and those small piles of receipts become mountains of confusion at tax time. There are only so many balls you can juggle at a time. It is important to find help for what you really don’t enjoy doing so that you can do what you love and make your business a success.
Reason 3: No Fear at Tax Time
Don’t let April 15th send you into a mad rush for paperwork, letting your poor accountant sift through boxes of financial information. It is better to know how much you’ll owe the IRS ahead of time and make quarterly payments. No more stress-filled days, giant tax bills at the end of the year, or nightmares about the tax guy who is out to get you. You don’t have to like taxes – I don’t like them myself! – but since they have to be paid, might as well do it without getting a new crop of gray hairs in the process!
Reason 4: Making Sense of Business Expenses
Categorizing business expenses, claiming deductions at tax time, and even paying yourself are all things that a bookkeeper can help you do. You don’t want to miss out on deductions, but you also definitely don’t want to get in trouble for trying to deduct more than you’re allowed! What about tracking mileage, meal or entertainment expenses, or sales taxes? A bookkeeper can help keep all of that organized too.
Reason 5: Someone on Your Side
Like I said earlier, being in business for yourself can be lonely at times. It’s hard to know who to ask for advice, and so many things are new! Having someone you can count on, who knows your business inside and out and who can show you where to reduce spending or how to make a workable budget will be a great benefit to you and your sanity.
As a happily married wife for 3+ years now, I really appreciate having someone on my side, in my corner, and who I can count on. 🙂
What do you think? Is there an important reason I missed? Which reason for outsourcing your bookkeeping is most appealing to you?
Want a free consultation to find out exactly how a bookkeeper like myself can help your business thrive? Start here!
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