Small business owners tend to find themselves having to make tough make-or-buy decisions. With limited resources in both time and money, it’s increasingly difficult to decide when it’s most efficient to “do it yourself,” as opposed to paying for a bookkeeper — especially when you’re looking to scale your business.
Be your own bookkeeper vs. Hiring a bookkeeper
While there isn’t a right answer that applies to every expanding business out there, there are factors to identify and consider when deciding the action that you’re most comfortable with. To help you make this difficult make-or-buy decision, here are some items to keep in mind when deciding to be your own bookkeeper versus hiring one.
Although outsourcing your books may seem like an easy option, oftentimes it’s not the most efficient. For small business owners just starting out, doing their own bookkeeping is possible because of the low volumes of transactions. Plus, accounting and bookkeeping services tend to be expensive—depending on the volume and complexity of your business.
Small business owners can gain value by preparing their own books, such as:
- New business skills. Small business owners can learn important business skills in finance and accounting—knowledge that can better inspire them to make informed decisions for future growth opportunities.
- Liability and connectedness. Being hands-on with a certain activity increases engagement levels and connectedness—it increases the feeling of liability for each action. That’s why performing your own bookkeeping will help you feel more connected to your business finances. Instead of looking at a single metric such as your online financial statement, owning your books will give you a clearer picture of your overall finances.
- Available resources. Blogs and forums for entrepreneurs or companies are available online, and is a great place to start with a community of like-minded business owners where you can share tips and advice with each other.
- Accounting software to simplify bookkeeping tasks. Finding the right accounting software can help reduce headaches associated with bookkeeping. Kashoo is not only affordable for small business owners, but it can help simplify redundant tasks as opposed to manually inputting and cross-checking your numbers. If you’re unfamiliar with now to navigate our software, Kashoo offers webinars and guides to help you get started. Plus, the Workspace is simple and easy to navigate!
Hire a bookkeeper
Despite that being your own bookkeeper offers numerous benefits, the decision to hire your own dedicated bookkeeper can also allow small business owners to reap many benefits, including:
- Saving time. The greatest benefit of hiring a bookkeeper is saving time; however, growth is still a key factor. As your clientele grows and business picks up rapidly, time will be the hardest asset to achieve and retain. That’s why having a trusted bookkeeper to delegate your accounting tasks to is a positive for the bigger picture.
- Accurate books. With growth also comes much more complex issues. With a dedicated, competent and experienced bookkeeper, you’ll not only have more accurate books but also a peace of mind every night, knowing that your books are up-to-date and in good order.
While hiring a bookkeeper frees up time in your day-to-day, it’s important to pay close attention to your books. Doing check-ins with your bookkeeper can help grow your own knowledge about accounting concepts and to ensure that you’re both on the same page regarding your business’ financials. Why? Although your bookkeeper may be knowledgeable on accounting concepts, they might not be the “expert” on what exactly is happening in your business. By conducting weekly or biweekly “check-ins,” you can ensure that the way they handle your transactions is relevant to exactly what happened in real life.
Similarly, you don’t want to completely lose ownership of your finances. If you choose to outsource your books, make sure to allocate time to review your financial statements—whether that’s weekly, monthly, or periodically to make sure that this is an ongoing action to get a clear idea of your overall financial situation.
Every business is different and grows at a various pace, which is why there’s no exact answer that applies to all businesses. In order to make the most informed make-or-buy decision for your books, be sure to look at your financial resources, time, and your capacity eagerness to expand your bookkeeping knowledge.
If you think that being your own bookkeeper is the right choice for you and your business, try Kashoo today using our 14-day free trial and see just how simple and easy it is to use.