As your organization grows, the need to keep accurate records in order to maintain its smooth functionality expands as well, not to mention the number of records themselves. If you’re not hiring a professional to look after your books, you’re doing it yourself. But all the time you spend focused on these day-to-day reports is time you’re not spending managing other business-related tasks. Of course improving your business means cutting costs and increasing revenue, but is managing your own records worth the risk? Through a cost benefit analysis, we’ve isolated a few of the more pertinent considerations to keep in mind when keeping the books yourself.
Costs
If you’re in charge of caring for your records, you’re likely using one of the many do-it-yourself accounting software programs available. Programs like these take time to learn, and while built-in guides and tutorials are there to help temper the learning curve, the time you invest is a real cost. So are the functionality limitations of the software. Is the program customizable to meet all of your company needs while allowing room for growth? Is it flexible and can it be integrated with the other programs you are currently using?
Another cost to look at with DIY bookkeeping is the general technology risk. Technology has the tendency to instill in its users a confidence that might not always be merited. Accounting software is complicated. If mistakes are made along the way, such as data entry, the software is incapable of sitting you down and offering advice in order to shore up your finances.
Benefits
The most visible benefit of keeping your own books is the money you’ll save with the initial cost. Purchasing accounting software is much less expensive than hiring and continuing to rely upon the expertise of a certified tax professional. And as technology continues to improve, so too does the user-friendliness of these programs. Their ease of use combines nicely with their accessibility. You do not have to schedule an appointment with accounting software and await some future date, for anywhere you can access the Internet, you can access and maintain your records.
Doing it yourself, once you get the hang of it, can actually save you time. Accounting software comes with convenient automated features, such as the importing of your bank and credit card transactions and fully-managed payroll services. By leveraging the assistance of a DIY program, you maintain control while saving money that would be spent on an outsourced bookkeeper.
Conclusion
The bookkeeping solution that’s right for you really depends on your specific situation. How much do you already know about bookkeeping specifics? If you have been running your business successfully in charge of your own accounting, then you probably need less advice and guidance and will continue to succeed on your current track. However, if your business is rapidly expanding and you want to focus on adding value to your clients rather than raising invoices, logging expenses and other general admin duties, then contracting out your bookkeeping responsibilities makes more sense.
Discuss with people you trust about which decision is right for you. Also feel free to schedule an appointment with us at Rosillo & Associates for an honest consultation about how we can help you reach a bookkeeping solution that fits your business.