Should I do my own bookkeeping or outsource?
Do you outsource your bookkeeping or do it yourself? When would you say is the right time to consider outsourcing?
Most small business owners go into business for themselves to focus on their passion.
They don't go into business to do their own bookkeeping.
That said, there are five reasons a business owner could consider doing their own bookkeeping
1. Save money
Starting a business and becoming profitable on the average takes 2-3 years. Keeping overheads down is very important. By completing your bookkeeping yourself, you save the necessary cashflow for other priorities.
2. Technology offers convenience and some automation
Xero, Quickbooks, MYOB, and Sassu all are popular choices. They are online, accessible anywhere where you have internet, offer bank feeds, and have opportunities to automate some of the work. Notice I stated, "some" of the work and not all. Any accounting software you choose will still require discipline to keep it up to date and accurate.
3. You get a "feel" for your own business
Doing your own bookkeeping allows you to get a feel for your business situation, who is paying you, who is getting behind in invoicing. Where your expenses are going and by how much. When you get someone else in, you might forget to check these areas yourself or arrange for them to communicate this with you.
4. You stay in control
You can monitor "real-time" your budgets, forecasts, and other essential information.
5. Peace of mind at tax time
Doing your books yourself correctly, your accounts will be up to date and accurate to have your accountant, or contact the ATO help program if under 60K turnover to complete your tax efficiently and economically.
DOWNSIDE TO OWN BOOKKEEPING
When work gets busy, bookkeeping is the first area you will fall behind in.
Your focus is rightly on the business of earning money.
The further you get behind in bookkeeping, the harder it is mentally to get the disciple or focus to catch up.
Bookkeeping is insightful when the data is "real-time."
If you are finding your business has grown and profit has increased, then it's time to outsource your bookkeeping.