5 Great Reasons NOT to Outsource Your Accounting…
As your business grows it makes sense to outsource the mundane, repetitive tasks you don’t want to do. However, there is one business task that you probably shouldn’t outsource, your bookkeeping.
Most entrepreneurs I have met, cannot wait to get someone else to do their bookkeeping. I think, particularly in the early days, that is a mistake. Let me tell you why:
- Business knowledge: From all the business owners I have worked with, the owner who actively processes their own accounts will have a better understanding of their business overall and will ultimately be more successful than the owner who 100% outsources that task. Why? Because when the books are outsourced they tend to be only used for filing annual taxes. There is no meaningful additional analysis of the numbers done.
- Added Value: when you are familiar with the details of your sales and your expenses, you have a better understanding of the reports your accountant provides and will be able to ask questions that will help you make better decisions in your business.
- Cash: how cash comes in and goes out of your business is critical for survival. By doing your own bookkeeping you understand how decisions made in your working day effect your cash and ultimately your business.
- Control: knowing your business from the ground up is only possible if you know the numbers. The customer who you spend most of your time with is often not your most profitable – without understanding your numbers this will go unnoticed. Spending time on the right things is key for your business to thrive
- Cost Effective: giving your accountant the ‘bag of receipts’ is costly. Your accountant charges by time. The more time they spend on sorting out the information the less time they have for analysis, unless you have a limitless budget.
With all the benefits to understanding bookkeeping, why is it one of the first tasks to be outsourced?
With so many manual and cloud based systems out there, it can seem overwhelming! There’s a lot of fear of making a mistake or doing it wrong. Often, though, it is hard to know where and how to start.
That is why I have come up with two different options to help get you started with your bookkeeping.
For the entrepreneur that wants to get the basic’s covered before handing over to the accountant – A mini online two week course, ‘Simply Bookkeeping’ shows you how to start, what information to keep and tips on how to make it easier for you.
Book your place for ‘Simply Bookkeeping’ here..
Dig a little deeper with my 6 week online course ‘Fall in Love with Finance’ which starts with the recording and setting up processes as seen in ‘Simply Bookkeeping’ and then turns these numbers into your monthly accounts.
Book your place for ‘‘Fall in Love with Finance’ here..
Creating a routine
You are more likely to keep on top of your bookkeeping and understand the numbers if you put aside a bit of time each week to do your paperwork. If you can make it the same time each week, you are more likely to form a habit.
The more you do your cash forecasting the more likely you are to see patterns and trends in your business. This helps you make better decisions.
This is why I have created #FinanceFriday coffee morning in my Facebook group.
Ideally spend 30 minutes on your accounts from 10.30 – 11.00 and then join me (details below) for a coffee and a chat. I love getting feedback and questions so if you are having any issues, #FinanceFriday is the best place to catch me.
Join my email list below (don’t worry I wont spam you!) to keep up todate with me.
If you have questions or comments, I’d love your feed back, contact me here.
I hope you are living your best life.
Till next time.