Why You Should Outsource Your Accounting
Outsourcing your accounting is an added expense, but it’s one that may be well worth it for your company and your overall sanity. Here are 5 reasons you should consider paying up to have someone else look after your books.
Keeping your company’s finances accounted for can be a lot of stress if you’re doing it on your own, even more so if you don’t really know 100% what you’re doing. You could probably improve your blood pressure, your relationships, your sleep, and cut your caffeine intake in half in one simple step – outsourcing the job!
Some things make sense to DIY. Painting your bedroom is an example where doing it yourself is a good idea. It saves you money, it can be fun, and it is a relatively low risk activity to do on your own, even if you are not a professional painter. Other things are better off done by a professional. Like dental exams. And accounting. Accounting is not fun (for the majority of people), nor is it low risk if you screw it up. Just leave it to the experts.
If you own a small business or a startup, chances are you have a lot going on on a day to day basis. You probably spend a fair amount of time wishing you had more time. If you’re trying to do your own accounting and finances, you’re essentially piling on another full time job onto your to-do list. Cutting that extra work out of your life would free up hours in your week that you could use to focus on more important things, like going to more networking events, or, you know, getting a decent night’s rest.
Accuracy and consistency
The margin of error for finances is not very big. You need accurate numbers to have a clear picture of your company’s health (and to not get in big trouble with the IRS) and hiring a professional will almost certainly reduce the risk of mistake. Also, life gets busy. It can be easy to push your books to the side and tell yourself you’ll get back on track next week, then before you know it two months have gone by and all you have is an idea of where you’re at. This is not good, and outsourcing the job would prevent this from happening.
It can be difficult to see things clearly and without bias when your personal interests are at stake. As a business owner you need to be able to make smart decisions based on concrete data, even when it isn’t the type of data or decisions you want to make. Having an outside party sum up your financial health for you can be a good way to prevent an ignorance is bliss type attitude.