Every buck count, especially for business owners taking a new venture off the ground. At such times, entrepreneurs turn into a one-man army, attempting to do as much as they can on their own. Among the responsibilities they embrace as their own is bookkeeping, which ultimately transforms into DIY bookkeeping.
Typically, the DIY approach works initially. When there is not much traffic on the balance sheet, it is possible to manage finances along with a hundred other things. However, as the business grows, the task becomes much more arduous.
Soon, a time comes when it becomes humanly impossible to balance the books and focus on growth simultaneously. So, what to do? You cannot ignore the former and it is almost a sin to neglect the latter. The best ploy is to realize when such time comes and outsource first to ensure the upward motion doesn’t stop.
Here are three telltale signs that it is time to stop DIY bookkeeping and accounting and outsource:
DIY is an incredible option, no doubt. It saves money and resources and gets the job done. As long as the job is getting completed on time, sheets are balanced and finances look fine, we suggest sticking to DIY. However, the day when you start missing more and hitting fewer deadlines, become cautious.
Missing deadlines consistently is a sign that managing finances is becoming a burden and you are struggling to find time to keep your business finances on track. This does not just indicate your finances are turning bad but also means your focus is getting deviated from growth and other things important.
See Also: 10 Best Practices For Small Business Record Keeping
So, which deadlines are we talking about? Dates when you must reconcile your books. Unlike state or federal deadlines, they are personal ones. However, they are equally essential to business success, if not more. Weekly reconciliations, monthly reconciliations, and quarterly reconciliations are some essential bookkeeping deadlines you must not miss.
As said before, if managing time to run your business right is getting tougher and tougher, you must get aware. Given you have remained the same and procrastination hasn’t taken over your life, the chances are something is taking up a big chunk of your time. As a result, little time is left to do what you must do.
However, recognizing when time management is becoming a challenge is not easy to recognize. Unlike the first, it is hard to recall exact instances when time management had you to the teeth. Nevertheless, a little recap helps. Be mindful of your time and try to manage it right. All it takes are a couple of weeks and you will start to see signs as clear as day.
Don’t delay. Ditch DIY and outsource bookkeeping before improper time management results in productivity loss and performance downturn.
If your books are losing their form, finances are getting inaccurate, and you are taking more and more ill-informed and instinctive decisions, it is better to brace for a disaster. Bookkeeping and financial management are done to help business owners stay on top of their finances and make informed decisions.
No business gets an award for best books in the industry. Keeping accurate books won’t get you praise; it helps you decide. The better you know your finances, the better positioned you are to take your business on overdrive. So, the moment you feel financial accuracy is getting compromised, it is high time to outsource.
As the lead, your team relies heavily upon you. An impression that you make calls less with your head and more with guts is not a good impression. So, before your ill-informed decision-making stems into an irreversible problem, you must pay heed to the sign and ditch DIY.
See Also: Top 6 Small Business Bookkeeping Tips For Steady Financial Success
We know that switching from DIY to outsourced bookkeeping may seem difficult, at first. However, you shouldn’t worry. At Monily, we regularly help small and medium-sized US-based businesses make the transition easy and hassle-free.
No longer is there a need to set up a place, hire, and finance an in-house team to manage your business finances. Now you can lend our teams to streamline your business finances and take your business up.
For more information, book a free 30-minute consultation with our expert bookkeeper. Don’t delay. If you see signs act before it is too late. Delegate!!!
Wajiha is a Brampton-based CPA, CGA, and Controller with 17+ years of experience in the financial services industry. She holds a Bachelor of Science Degree in Applied Accounting from Oxford Brookes University and is a Chartered Certified Accountant. Wajiha spearheads Monily as its Director and is a leader who excels in helping teams achieve excellence. She talks about business financial health, innovative accounting, and all things finances.