As a business owner you have a lot of big decision to make. One of which is how you are going to manage your bookkeeping.
As a business owner, it can’t be avoided, if you don’t do it someone else needs to. It is a requirement for tax purposes at a minimum. But we don’t want to talk about the minimum. We want to talk about the best case. Best case is the information gathered from your transactions is converted into quality information that can be used by the you to make decisions to help grow your business.
You have three options when it comes to bookkeeping.
- Do it yourself.
- Hire staff.
If you are doing it yourself, you have the benefit of being in the details and having a very thorough understanding of where your financial situation. But that comes at the cost of your valuable time. That is time not spent growing your business.
The benefit of hiring for yourself is you have a dedicated staff member. They are right there whenever you need them, and their sole focus is your company, and your business needs. The downside is that you have increased your expenses, if you are still growing you may only be able to hire part time, or at a lower rate than the skill level you need. Not to mention the added complexity of hiring staff as a business owner.
Outsourcing, can be tricky. You won’t have control over their schedule, and they may be a little pricier by the hour. But what an outsourced bookkeeping professional can bring to the table far outweighs the lower availability. An outsourced bookkeeper doesn’t just draw from their experience with your company, but with every company they work with. If they are doing their job right, they share the knowledge they gain with you. Not trade secrets, but the wealth of experience that comes from overseeing the books of many businesses and how different businesses solve various problems. Some of which you may be acing, and some that you have yet to face.
Every option has its pros and cons, when weighing the decision on whether or not to outsource it is important to consider your own unique situation and what your needs are.
Best of luck.
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining legal, accounting, or other financial advice from an appropriate legal professional, financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.