Before we talk about when it makes sense to outsource bookkeeping, first let’s talk about small business in general. We know that every small business is unique and comes with very different demands. However, small businesses do share one thing in common, the need for bookkeeping that is pinpoint accurate. As a small business owner, you should have a tracking system in place right from the beginning and you should be able to manage it routinely. But sometimes this is not possible. The demands of small business are far and wide. If this is the case with you and your business, then you need to consider outsourced bookkeeping. When you have an efficient bookkeeping system it not only makes life easier but it also allows you to stay focused on other business functions, such as increasing revenue.
As business owners we spend a lot of time and in some instances a lot of money getting out businesses started. The goal is to turn our small business not only into our livelihood but also into our passion. When we do this, we tend to push hard and often. Every little thing can require the consideration of the owner and at the end of the day, these little things add up. Our time quickly fades and so does our energy. This is when the books can fall through the cracks and the consequences may not be easily or readily apparent. Those same consequences have a tremendous impact on us. For instance, when you are preparing for income tax, you more often then not incur unwanted stress. The perilous arm of tax season seems to have a long reach. Miss one expense and you now have a costly error that cuts right into your bottom line, not to mention your limited time.
When you outsource bookkeeping, you save time and money both directly and indirectly. Time is money in the small business world and when you have more of it, you can earn more. Aside from relieving the pressures that come with bookkeeping, this is the greatest benefit of outsourcing. Not to mention that you books will be done right the first time. You have the option of software programs but you have to ask yourself “Do I know how to use the program?” While at it you can also ask “Do I have the time to commit to the this?” and “What happens if I make a mistake?” In the end, the goal should be simplicity which is why hiring a professional makes so much sense.
So let’s recap. When is a good time to outsource bookkeeping? The best time would be before you get behind or fall into a dangerous situation. Don’t wait to find out that you do not have the time for your books. Look at the needs of your business early on and make the right choice from the start. Your business gut will tell you if outsourcing makes sense.