You may be asking yourself. Should I do my own booking or hire someone to do it for me. Like every choice you make, there will be pros and cons for each. It is up to you to decide. Being able to focus on your business growth rather than your booking is one pro for hiring out. Want to do your own books? With enough time and practice you can accomplish this. Being able to know where your company stands without having to reply to a bookkeeper to get back to you is one pro of doing your own books. It is good practice to know the basics of bookkeeping to understand what is going on in your business. I will list in detail some of the pros and cons of hiring out or DIY.
Let us compare the pros and cons of each. DIY or hire out your bookkeeping? 10 min read.
DIY
Save money- this is probably one of the biggest factors to DIY bookkeeping. It is understandable that when you first start your business, you don’t have the revenue coming in to justify monthly bookkeeping services. It takes time to learn proper bookkeeping, but it can be done. After all, you are a business owner. I believe anyone who ventures out on their own has the drive to figure it out.
Understand your money inflow and outflow- This is something you will get from both DIY and hiring out. Being able to see what products or specific services give you the most revenue is key to your growth. This is important because proper bookkeeping tells you what products or services you should focus on to maximize your profits. Where is your money coming from, and where are you spending it on?
Strategic decision making in an instant- No waiting for your bookkeeper. As a bookkeeper, as much as I want to reply within minutes, I cannot. Doing your own booking allows you to log in to your accounting software and instantly decide if you have enough revenue coming in to buy something for your business. You find a good deal on something that can benefit your business? Proper bookkeeping allows you to be sure that your business will be okay with the purchase.
Privacy- You do not want others to look at your business’s books or know how much money you make.
Control- Doing your own bookkeeping allows you to have control over the financials of your business. Does someone owe you money? Is an employee stealing money? Do you need to order more inventory? Questions like these can be answered with proper bookkeeping and seeing your books on a weekly basis.
Hire out
Growth potential- Paying for professional services from others allows you to focus on what you do best. With limited amounts of time, allowing other professionals to come along side your business journey allows you to focus on what maximizes your revenue.
Managing vs working- As a business owner you may be tempted to micromanage and do everything yourself. There is a difference between working on your business vs working in your business. As a business it is important to transition from working in your business, to working on your business (managing). Hiring out your bookkeeping allows you to remain in control of your finances while freeing your time to managing your business for optimal performance.
Professional- A dedicated professional is trained in the best practices of bookkeeping. This will give you peace of mind, knowing you can make wise business decisions.
Peace- Did you know that bookkeeping can be done incorrectly for years without anyone noticing? Proper bookkeeping using the Accrual or Cash base method must follow certain rules for true and fair business representation. Hiring out your bookkeeping gives you peace of mind that your books are done correctly.
Strategic planning- As a business owner your time is limited. You are like the captain of a ship navigating the ocean of business. A bookkeeper on your side allows you to quickly ask for custom reports, budgets, and any financial information that you may need.
The choice is up to you and at what stage your business is in. I hope this article has made your decision a little easier.
Lancaster, CA