As a business owner, you wear many hats. But should bookkeeping be one of them? While taking charge of your books might seem like a smart move, it could be holding you back from reaching your full potential. Here are ten compelling reasons to fire yourself from the bookkeeping role.
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You think it will keep you from getting ripped off.
While it’s smart to be concerned about internal theft, there are better ways to prevent it than doing your own books. With a smart allocation of duties and oversight you can have accurate records and peace of mind, knowing there are checks and balances. Ask your CPA for advice on separating duties so you can delegate with confidence.
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It’s not the best use of your time.
It’s fun and easy for you – you’re too good at bookkeeping. So good that you ignore other, more important things like developing new business or management depth. You’ve got better things to do with your time. Try coming up with strategies to maximize profits and growth. Let’s get to it!
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You’re not good at bookkeeping.
You think it costs too much to hire someone to do it for you. But when you get to year-end you spend a boat load of dough having your CPA fix it up. What does that cost? Not to mention the opportunity costs of the profits you’re missing by spending your valuable time on bookkeeping functions instead of business development.
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A better solution is out there.
You don’t know how to hire or supervise a bookkeeper. We get it, it’s pain to find and keep qualified people. Outsourced bookkeeping services can be a great alternative. They do the hiring, and training of your designated bookkeeper and are accountable for meeting deadlines and keeping a clean set of books.
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You think you have your thumb on the pulse of the business – but you don’t.
Keeping all the records might help keep you up to date on day-to-day transactions, but sometimes we can’t see the trees for the forest. There are more efficient and more insightful ways to stay on top of what’s happening financially in your business. A good bookkeeper provides a consistent financial review packet with your KPI dashboard so you can see trends and anomalies in ways you just can’t see when you’re too close to the details. (Not to brag, but we’ve been told our Profit Soup Online is pretty good at getting owners comfortable with their role as a financial manager.)
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The friend or relative that’s helping you is not up to the job.
It’s resulting in mistakes, late statements, late tax filings, penalties, and awkward dinner discussions. Free them up to do better things with their time and save your personal relationship.
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You’re drowning in compliance.
Keeping up with ever-changing tax laws, reporting requirements, and industry regulations is a full-time job. Not knowing the rules can cause some expensive errors of omission. A professional bookkeeper stays current on these changes, ensuring your business remains compliant and avoiding costly penalties.
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Your business is growing.
As your company expands, your financial management needs become more complex. A professional bookkeeper can scale their services to match your growth, implementing sophisticated systems and processes that support your evolving business.
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You could be costing yourself money at tax time.
Come tax time, your CPA will spend costly hours making adjustments and fixing mistakes. The time spent uses up your professional service budget, so tax planning and business planning just doesn’t happen.
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You’re compromising your work-life balance.
Spending evenings and weekends catching up on bookkeeping takes away from your personal time. Get help with your books and reclaim those hours for family, relaxation, or planning for your business’s future.
Recognize when it’s time to hand over the reins to a professional. You’re not admitting defeat – you’re making a strategic decision to propel your business forward. you’re your time and energy are your most valuable resources. Invest them wisely where you can make the biggest impact, and let the experts handle the rest. Your future self (and your business) will thank you for it.