I often get asked this question. Afterall, most small businesses don’t want or need any extra expense in their business so, is it really necessary to outsource this particular task or would you be better off, doing it yourself?
The simple answer is, there is no simple answer. It really does depend on you, your time and your business activity.
The fact is, anyone can do their own bookkeeping. You can even purchase accounting software to make it easy for yourself, but that statement is key to making your decision.
The question really should be, is it easy for me to do my own bookkeeping?
In many cases, a sole trader or small business will start off doing their own bookkeeping and manage to keep on top of it. The problem is, when you start to get busier, time is precious, and you need to decide how productive it is to be spending your time sorting out your receipts and invoices rather than concentrating on the activities that drive your business.
We often find that it’s one of those tasks we put off. We will put it in the diary or set time aside every month, but something will come along that we simply must attend to. It’s about priorities and bookkeeping, more often than not, falls into that dreaded “to do list”.
This tends to cause a small business owner much more stress in the long run. All of a sudden, time will sneak up on you and suddenly, that small pile of receipts and invoices has developed in to a messy pile of paperwork that will take hours to sort out.
If you are super organised and know, without a shadow of a doubt that you can allow this time every month, in theory, you should be fine but if you are like the majority of business owners, you may find yourself in a chaotic mess at the end of the tax year.
Ultimately, it’s about productivity. Is it more productive for you to be working on the things that bring the money into your business or sorting out your paperwork? You need to decide what that’s worth to you.
If you spent the time working on your business instead of doing your own books, what would that translate to in monetary terms? If it’s likely to be more than the small fee you will pay a Bookkeeper then the answer to your question is yes, you probably do need a Bookkeeper.
My advice would be to talk to your local Bookkeeper. Perhaps it’s someone that you network with and you’ve built a relationship with. If they are anything like me, they will do a simple health check on your books for free and will give you a much better idea of whether this is something you need to invest in now, or if it can be out off until a later date.
Of course, I’m always on hand if you need any further help or advice. Neeta x
Outsourcing is actually a very realistic option for business owners so don’t be scared. If you’re still not sure, Rosemary Bookkeeping are more than happy to come and help you find out about making tax digital or just do a 1-2-1 health check with you and give you the opportunity to decide for yourself if you think you could benefit with no obligation, contact your local Rosemary Bookkeeper today.