The Hidden Cost of D.I.Y. Bookkeeping
As an entrepreneur, your time is valuable.
You built your business from the ground up, and that means doing a lot of dirty jobs nobody else wants to do. But once your business is humming, there’s no reason to keep doing low-value tasks. Your time is simply too valuable. You should be hiring people, doing strategic work, and focusing on higher level decisions for your business.
If you’re spending several hours a month on your bookkeeping –or any time at all– that’s too much time. That’s time you should be spending on other areas of your business. That’s time you should be at home with your family. The cost of your time is just too high to spend any of it on your books.
Your energy and focus are limited resources
No one has unlimited mental energy. You can increase your energy and focus through things like exercise and meditation, but the reality is, even the most enlightened among us only have a certain amount of mental energy in a given day.
As a small business entrepreneur, there are many things about your job and your lifestyle that are going to stress you out and wear you down. Keeping yourself sane is important. Bookkeeping shouldn’t stress you out, or even contribute to a bad day, since it’s not as valuable for your business as the other things you do on a daily basis are.
Don’t get us wrong, bookkeeping is incredibly important. But as a business owner, there are certain things only you have the vision and ability to do. Bookkeeping isn’t one of those things.
You could be missing out on valuable business insights
For every business, there are key performance indicators that give insight into how the business is doing. If you do your own bookkeeping, it’s likely that you don’t have the time, energy, or expertise to produce advanced financial reporting that includes your business’s key performance indicators.
Here’s the simple way of explaining it: financial reporting takes bookkeeping from a necessary evil to a useful tool. Financial reporting makes your numbers mean something to your business. Financial reporting will show you how you’re doing compared to last month, last quarter or last year. It will show you where your biggest expenses are and what revenue streams have the best margins.
These insights drive your business in the right direction – don’t miss out on insights that could save or make your business thousands of dollars because you want to save a couple hundred dollars a month on a bookkeeping service.