The Dangers Of DIYing Your Books
In an ideal world, running your own business is about being able to live the dream and to focus your energies on doing what you love and doing it well. In reality, you may find yourself spending a lot of your time doing things for your business that are not what you enjoy and are not in your wheelhouse.
If doing your own bookkeeping is one of those dreaded things, does it really matter? Are there dangers to doing your own bookkeeping? In this article, we will consider those important questions and how to turn a potential negative into a resounding positive.
Do you find bookkeeping a frustrating chore?
If you are like most solopreneurs you did not get into business for your love of bookkeeping. Many people find it a necessary evil, a frustrating chore that all too often gets put to the bottom of your to-do list.
Most solopreneurs would never think of trying to do certain tasks like fixing their car or cutting their own hair. If it’s not a skill they already have, they would not think twice about hiring someone to take care of it.
At the same time, they will try to do their own bookkeeping even though it is not something that they have experience doing, they dislike doing it, and they find it to be a burden.
Protect the health of your business
As we have already said, there are parts of your business that you would much rather spend your time on. There are also business activities that are a much more sensible and profitable use of your time, experience, and unique skills than bookkeeping.
But it is not only about what you prefer to do with your time, it’s also about keeping your business healthy and secure. Keeping your business finances organized is all about keeping precise track of what comes in and what goes out and all of that needs to be constantly reconciled so that you can monitor the health of your business. It’s a big job and it’s essential to the long-term health of your business.
Making sure that your books are cared for properly will help you avoid expensive errors that range from simple mistakes like incurring a late fee, to much more complex errors.
If you are a procrastinator, you might ignore your bookkeeping until tax time, and be surprised at what is owing! This is not good for you or your business. All of these headaches can be easily avoided by placing your bookkeeping in the hands of a trusted professional.
There is no need to pay the penalty for procrastination
Making smart business decisions depend on having a clear and current understanding of your true financial situation. This means knowing precisely what your account balances are, what you owe, and what your future position will be according to your cash flow forecast.
When you keep on top of your finances, you will not be sidetracked by overdue invoices or inventory problems, or surprised by expenses and costs that are variable such as wages or shipping costs.
If you have your books cared for by a professional, you can avoid those surprises and have your finances handled in a timely manner. There will be no need to guess when it’s time to spend or when it’s time to hold back. You can avoid a compromising situation or find you unable to pay for services on time, which could undermine the trust of others.
You will always be able to make financially sound decisions and you will see your reputation enhanced as a result.
As you can see, for some solopreneurs it makes much more sense to have someone handle their bookkeeping instead of doing it themselves.
If you would like someone that is reliable, trustworthy and has experience with businesses of all sizes, we encourage you to book a call here to discuss the right decision for you and your business.
