I found this article on a blog by Matt McFedries a business owner based in NZ and I wanted to share it here as I thought it captures the essence of the “value” you get from engaging professional bookkeeping services rather than seeing it as a “cost” to your business. It also supports my work & life mantra ” Work Smarter, Not Harder “. I hope you enjoy reading Matt’s article:
Four reasons DIY bookkeeping is capping your business growth
I went for years doing my own bookkeeping. I thought I was saving money… but in hindsight I think the cost of not having a bookkeeper was far greater.
Reason 1: Sporadic bookkeeping habits slow you down
If you don’t have up-to-date data on how your business is tracking weekly or at least twice a month it’s hard to change your tactics throughout the month to improve your results.
For example, if it’s clear mid-month that your income is not reaching budget, then at least you have the rest of the month to focus on closing more deals. Remember there’s only 12 months in the year – the more months you can ‘win’ the better. Finding out at the end of the month that you missed the mark is not ideal.
Reason 2: You’ll miss opportunities to make/save money
Having an expert or third party reviewing your books on a regular basis is likely to yield opportunities to save on tax or make other financial decisions to optimise your position. Some of the best advice and insights I’ve had have come by simply having a 3rd party opinion from someone viewing my business from the outside.
Reason 3: Every decision you make taxes your brain
Every decision you make costs you. Some people have a greater capacity to make decisions than others. Let’s say you could make 100 decisions each day across your business, how many of those decisions would you spend on deciding how to reconcile your bank? Or is your brain put to far better use elsewhere in your business?
Reason 4: It lightens your load. Wouldn’t that be nice!
Everyone that’s started a business understands the true cost. It’s measured in risk, stress, time away from family and the inability to switch-off outside of ‘typical’ working hours. Having a bookkeeper that’s on your team, enabling better decisions, suggesting ways to save you money and increasing your financial IQ can provide a significant relief to the constant battle you face each day to build your dream.
I believe there’s two types of business owners in this world. Those that value their time and those that don’t.
Unfortunately our DIY mentality can really hold us back, we end up working harder, not smarter and we do it for years on end. It might be time to wake up.