Should I Do My Own Bookkeeping?
Should I do my own business bookkeeping? The question is common among small and mid-sized businessowners intent on maximizing profitability and optimizing resource allocation. However, at some point during business growth and development, the decision and opportunity to wear every hat becomes increasingly difficult. Is delegation the right choice? What is the best way to utilize your time?
If you are considering these financial management questions, allow this article to serve as a helpful guide. Below, we explore the most important items to consider regarding DIY business bookkeeping, including when it is time to outsource.
Top Items to Consider
Do you have accounting or bookkeeping experience? If not, are you willing to take a few basic classes? As an entrepreneur passionate about the continued growth and success of your business, it is paramount to consider who is most capable of properly keeping your books. If you fit into this category – or could complete basic training to aptly prepare – you may be the right individual to tackle business bookkeeping!
While many business owners do not have the luxury to consider interest in every area of management, considering a tendency towards boredom in bookkeeping is critical. Boredom and complacency can lead to mistakes. Overlooking important aspects of business finances is simply unsafe for the long-term health of your company.
If you know that bookkeeping will be a subject of extreme boredom for you, DIY bookkeeping may be an imprudent decision.
Time is an extraordinarily valuable asset. For some small to mid-sized business owners, time is the most valuable asset. Will DIY bookkeeping be the most efficient use of your time? Are you the best person to complete this task?
Even entrepreneurs and small business owners often do not have the time to manage all aspects of business development with dedicated excellence. Therefore, determine which aspects of business development are most profitable with your involvement.
For some business owners, the perceived cost-efficiency of tackling DIY bookkeeping is outweighed by time lost completing more profitable tasks. With all things considered, outsourcing to a professional can be more cost-effective than completing bookkeeping yourself.
When Should I Outsource My Bookkeeping?
The following questions help you determine if it is time to consider outsourced bookkeeping.
Do you waste time multitasking?
If you spend more time completing bookkeeping tasks than acting as CEO of your business or managing client relationships, you may need to consider additional assistance. Beyond the time taken from other management activities, studies have shown that multitasking can deplete productivity.
The American Psychological Association states that shifting between tasks can cost up to 40% of someone’s productive time. The APA goes on to explain the downsides of multitasking:
Doing more than one task at a time, especially more than one complex task, takes a toll on productivity… Psychologists who study what happens to cognition (mental processes) when people try to perform more than one task at a time have found that the mind and brain were not designed for heavy-duty multitasking. Psychologists tend to liken the job to choreography or air-traffic control, noting that in these operations, as in others, mental overload can result in catastrophe.
In situations such as this, where a business owner may fill numerous positions within the company, incorrect bookkeeping procedures or inefficient methodology can hurt productivity.
Do you need assistance in making informed financial business decisions?
Having accurate, timely insight into the financial health of your business is critical. For example, understanding cash flow sheds light into the positive trajectory or potential downfall of your organization. A lack of bookkeeping knowledge can impede a business owner’s insight into current, actionable financial information.
If you feel ill-equipped with the current financial understanding to make insightful business decisions, an outsourced booking solution may be the best decision.
Do you want trustworthy assistance?
Handing the financial tasks of your business over to another party is never easy – internal financial records are among the most guarded business assets. You want to maintain utmost privacy and security. Outsourcing to a remote bookkeeping service with excellent client testimonials, strong references, and secure software affords peace of mind.
Do you desire to establish scalable infrastructure now?
As the owner of a growing business, you quickly understand the impossibility of juggling every position, especially as the company develops and becomes increasingly complex. At the same time, small and emerging business owners often lack the capital to train and hire a full-time staff member with the expertise to manage a growing business’ bookkeeping needs.
An outsourced bookkeeping service may be the best option. An outsourced bookkeeping team provides the professional expertise needed, at your pace, without the costly commitment of an additional staff member.
Are you concerned about properly prepared financial records for taxes and audits?
Professional bookkeepers are instrumental in preparing financial records for accountants, banking institutions, and the IRS. Handing financial records to professionals eliminates the possibility of inaccurate books or monetary data. As a business owner, you should feel prepared to display up-to-date financial records to the bank, to investors, or to the IRS as needed.
MyRQB: Small Business Bookkeeping Solution
At MyRQB, we are a professional outsourced bookkeeping and payroll services company, trusted by national companies. Our team is known for professional expertise – we guarantee cost-effective and accurate bookkeeping services. Additionally, security is never a concern for our clients. We host your data on highly security servers, providing you with a safe haven for your most precious, confidential financial data.
While working with our team, clients know they can focus on the most important tasks involved in growing a success business. Valerie Smith, owner of Nuway Cleaners, describes the freedom found while working with our team:
The best thing I ever did for me and my business was hiring MyRQB. Mark and his staff take care of all my bookkeeping and payroll. I do nothing, which gives me more time to spend on other things.
If you are interested in learning more about our company or requesting a quote, feel free to reach out at 866.567.4258 or via our online contact form! We will be in touch shortly.