The genesis of my weekly topics is often a recent experience with clients or workshop audiences. This week’s inspiration is courtesy of several new business clients who thought they were saving money with DIY bookkeeping.
I say “thought they were” saving money because it costs more in the long run for entrepreneurs to bootstrap their bookkeeping. They spend time away from running the business and can’t keep up with the books. Bottom line – the business has not grown and the books aren’t up-to-date.
Save yourself — or someone you know — from these four “hidden” costs of DIY bookkeeping:
1. Lack of Awareness
You’re an expert in your business, not a financial expert. A qualified bookkeeper will help you follow the accounting rules that apply to your business and track all the income and expenses that you should. Going back and fixing your books can take a lot of time.
2. Incomplete Records
It’s hard to keep the books while you manage the business. You can’t afford to make an important decision with incomplete or inaccurate financial information. A qualified bookkeeper will keep your records up-to-date and provide monthly financial reports.
3. Tools that Don’t Get Used
Bookkeeping tools don’t come “out of the box” all set up for your business. You (or a qualified bookkeeper) need to set up the accounts to track the income and expense needed to manage the business. Going back later to “re-do” your account set-up is time-consuming.
4. Bank and Other Fees
Overdraft charges can really add up. Incomplete books can increase overdraft and other bank charges. A qualified bookkeeper will keep on top of your balances and alert you to avoidable fees, penalties, and interest charges.
It’s frustrating to see clients spend time and money that don’t get the results they need to grow their business. Reduce your frustration and grow your business by avoiding four of the “hidden” costs of DIY bookkeeping.