Can we be brutally honest with each other for a minute?
If you are a business owner, you should not be doing your own bookkeeping; hand writing or printing checks, paying the bills, downloading credit card transactions, reimbursing cash receipts and expenses, etc. In the last few months I have met and talked to a number of business owners in the same spot at you are in some variation of it. Owners of startups, growing business, even established ones too, who say that they do all or part of the finance management.
I don’t want to come off rude, that’s not my intent here, but this just shouldn’t be. I know it is hard to let go of the control of making sure that every cent is accounted for when the business is your baby; your idea that you created, cultivated, and put into motion. It’s like letting go of the handle bars on your child’s first bike ride. But you have to do it sooner or later, otherwise your baby will never grow and prosper.
In this world, time is money. And your time is worth a lot of money. I am willing to bet that your hourly wage is a lot more than paying a bookkeeper, so the argument that you don’t have enough money to pay a bookkeeper, that doesn’t really work here. For every working minute you are working on tasks that are not 1) part of your scope of work or 2) business development, you are wasting your time and money. What does that mean? Well, unfortunately that means that you are not only not making money, but you are also losing it.
Don’t believe me? Well without going into too much of a cost analysis, if you bill your services at $150 an hour and a bookkeeper charges anywhere from $55-$85 an hour, for every hour you personally spend on financial tasks, you are losing $65-$90 an hour that you could be making elsewhere. Just let that sink in for a minute.
So why not find someone you can trust and have faith in, who can take care of your finances and report all of the details to you? It doesn’t have to be me (although I would truly love to help you take these services off your plate and start putting more time into your business), but it should be someone capable and qualified, not uncle Bob or your neighbor. How about making that a 3rd or 4th quarter goal you can feel good about and let me know how it goes.
As the summer winds down and kids are going back to school, it is a great time for home owners and businesses to start getting their heads back in the game and considering their end of the year preparations. Here are 8 mid-year finance and operation tips I put together from my 11 years of experience managing businesses. Please keep in mind, some recommendations may not apply due to the the size, industry or fiscal year of your company, but it is important to be aware and discuss these topics with your bookkeeper, CFO and or accountant.
And of course, if you are feeling overwhelmed, confused or interesting in having assistance with any of these tasks, I am here to help! Please do not hesitate to contact me. Have a great rest of your summer!