The smart business owner today knows you need both – more revenue and contained expenses – to make your business work both in the long-term and short-term.
But there can be a real danger here. The danger is focusing on the expenses more than the income. In this case, it’s tempting for the small business owner to want to do-it-yourself on tasks to keep costs down. Some times that’s all you can do, but there can be some real mistakes if you try to do it with bookkeeping. Here’s why.
Here are 3 reasons why do-it-yourself bookkeeping can cost you big time:
- It takes you off your primary purpose: make money for your business.
- You’re probably not going to do it as well as a trained bookkeeper can.
- It’s difficult to make management decisions on the numbers, if you’re involved in the numbers. (Can’t see the forest for the trees.)
If you’re still not convinced that it’s time to get a bookkeeper (assuming you don’t already have one), then ask yourself:
- Do you have financial statements prepared each month?
- Do you have accurate financials within 3 weeks after the end of the month?
- Can you pull vital stats such as the lifetime value of a client, your average gross profit margin and your projected cash flow over the next month?
- Do you know which of your products or services provide the most profit?
- Does your CPA get all the information she needs to provide good year-end tax planning?
- Do you know your most valuable stats for your business?
Chances are you can get an online, virtual bookkeeper for way less than it would take to have a bookkeeper in your office. Give us a call if you’d like to find out how we produce timely, accurate financial statements and then teach you how to read them. You can call Richard Richard@USTaxAid.com at 888-592-4769.