Many small business owner’s find themselves struggling with determining whether they should manage their own accounting or outsource.
Why do I need to outsource? After all I am capable of managing my own expenses and tracking my revenues. Doing it myself will also save me money. But will it? These are some common conflicting questions many business owners wrestle with each year.
How do you know you need to outsource?
You may want to consider outsourcing your accounting or bookkeeping if you find yourself in one of the following situations:
Falling behind in maintaining your accounting records months at a time.
Unable to determine which client owes you money or which vendor you need to pay.
Struggling at the end of the year with reconciling your books and entering missing transactions.
Unable to file your taxes on-time due to delayed financial statement preparation.
High tax liability due to loss of accounting records.
Find the task of accounting or bookkeeping mundane, frustrating or a waste of your time.
No budget to hire a full-time or part-time accounting professional.
Sure, we would all like to do everything ourselves, we can try, but the reality is we may not be able to dedicate the time, or we may not be experts at everything.
Before you decide on DO-IT-MYSELF accounting or bookkeeping, figure how much time you will spend doing it yourself and put a cost to your time. You may then want to find out from a trusted accounting firm, the annual or monthly cost of maintaining your books. You may be surprised to learn that it is far more cost-effective and worthwhile to outsource your business accounting. You will also realize that outsourcing gives you peace of mind and frees up your time to focus on more important things like growing your business!