DIY Bookkeeping vs Hiring A Bookkeeper: What Actually Saves You Money?
Running a successful business means knowing exactly where your strengths lie, and which tasks should be outsourced or allocated to others better versed in them than you are. That’s why outsourcing critical, but non-core, tasks can be a game changer, freeing you up to focus on the work that grows your business instead of getting bogged down by admin, paperwork, and financial bottlenecks.
Hiring a virtual bookkeeping service helps you spend your time more efficiently, giving you back the bandwidth to work ON your business, not just IN your business.
Here are some of the reasons why financial tasks like bookkeeping are among the most outsourced tasks by businesses.
The Time Cost: What Is Your Time Actually Worth?
At Sandhills Bookkeeping, we regularly talk with business owners who start out doing it all themselves, only to find that bookkeeping is one task that quietly drains time, energy, and revenue. In fact, according to the National Small Business Association, two out of five small business owners spend more than 40 hours a year (that’s an entire work week!) on dealing with federal taxes alone. Add in payroll, sales taxes, and day-to-day bookkeeping like payments and other transactions, and you’ll find that it all adds up to a whole lot more.
Errors: The Hidden Expense Of “Good Enough”
Bookkeeping mistakes are more common than most people realize, especially when the task gets squeezed in between other responsibilities. DIY errors like miscategorized expenses, duplicate entries, or unreconciled accounts are common and can create more issues than just a headache when tax time rolls around. They can mean inaccurate reports which in turn can make or break your chances of securing a bank loan. Inaccurate reports can also lead you to making poor business decisions like hiring a new employee or expanding to a second location. A professional bookkeeper catches issues or prevents them from occurring so that your financials stay clean all year through.
Missed Deductions: The Cost You Never See Coming
Inconsistency with your bookkeeping can mean missed opportunities to save on taxes. A bookkeeper can help you uncover deductions that are easily overlooked like those on equipment and software, travel, contractor payments, and subscriptions. Add these deductions up and they may far exceed the cost of hiring a bookkeeper.
Audit Risk: Accurate Books Reduce Stress And Liability
Audits can be triggered by poor records, for transactions with other businesses under audit, or just because your business was picked out of a list of names. Whatever the reason, the repercussions of non-compliance can be severe. DIY books often lack the clear documentation, precise categorization, and organized paper trail that auditors look for. Professional bookkeepers are up to date with IRS requirements and keep your books and financial reports ‘audit ready’.
Real Business Growth
If your profits don’t add up with the revenue you’re generating, your financial data can help. A skilled bookkeeper can help you pinpoint the areas draining your resources through consistent, monthly financial reports so you can take corrective action.
The Stress Factor: Peace Of Mind Has Real Value
A happy client of ours said that we’ve saved him, “countless hours of time and stress when it comes to managing [his] finances.” That’s one of the reasons why we do what we do at Sandhills Bookkeeping. We’ve found that peace of mind is one of the biggest motivations business owners have for hiring our virtual bookkeeping services.
When you hire a bookkeeper, you get:
- Confidence that everything is done correctly
- Support from someone who understands your finances
- Fewer surprises at tax time
- Your time back
It’s All About The Bottom Line
While DIY bookkeeping appears cheaper at first glance, consider your hourly rate when you do your books, the increased taxes because of missed deductions, and the potential cost of an audit. You’ll find that professional bookkeeping services give you real, measurable savings
Book your free consultation today!