Should You Do Your Own Bookkeeping?


By Amanda Karen | CrunchSum



do your own bookkeeping

How valuable is your time to you? Should you do your own bookkeeping or have a professional outside of your company handle this task? Whether you are a sole proprietor, small business owner or just starting your exciting journey of entrepreneurship, at some point, you will have to make this decision.



Managing your business finances can become a full time job in and of itself. With many businesses failing in the first five years due to mismanaged finances, this decision is worth exploring further.


Scarce Resources

In general, your two primary resources of time and money are very limited, especially if you are just starting your company. Taking on the behind-the-scenes task of bookkeeping may not be the best use of your time. You can instead use this time to innovate, focus on making your product better, and grow your customer base. During the new business pursuit, success is all about maximizing your time.


Bookkeeping Knowledge

Maybe you do not have bookkeeping or accounting knowledge. This can be learned. However, it is likely that you do not have the time to spend educating yourself on accounting basics (nor do you really want to). You would also be required to master accounting software. This could turn into a very time consuming task. One that you may not want to be responsible for.


Cost Benefits of Not Doing Your Own Bookkeeping

Business Owner

For most business owners bookkeeping is not an area that is very exciting. The time it will take you to complete your bookkeeping each month will be understandably longer in comparison to a specialized professional. Not to mention the opportunity costs you would incur in the process.


Employee

There is always the option of hiring personnel to complete your bookkeeping in-house. However, utilizing a bookkeeper outside of your company can be very cost effective in comparison. You can eliminate incurring several employee related expenses such as training, medical benefit costs, payroll tax, vacation and sick pay, etc.


Should You Do Your Own Bookkeeping?

Ultimately, the decision will be determined by how valuable your time is to you. Why not cut costs and get some of your time back by enlisting the bookkeeping services of a professional? Focus your time and energy on the areas of your company that you are truly passionate about. Sometimes the art of delegation should be your best skill.


Have you had to make this decision for your business? What were the outcomes? Share your experiences below. To learn about the bookkeeping services CrunchSum offers please send an email to info@crunchsum.com.


CrunchSum provides web-based bookkeeping and QuickBooks support services to web and technology companies.


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2 thoughts on “Should You Do Your Own Bookkeeping?

  1. Absolutely great post! Bookkeeping is definitely an integral part in any business, however, some businesses do not have the time nor the expertise/staff to undertake their own bookkeeping services. This is where Bookkeeping Training comes into play, should the firm decide to keep its own bookkeeping internal. I also strongly agree with there being an opportunity cost to internal vs. external bookkeeping. But most of all, I agree with internal vs. external bookkeeping being totally based on how valuable the investment in time is.

    • Thanks for the response! I think that an even bigger challenge (in addition to the decision of keeping bookkeeping internal vs. external as you mentioned) is helping small business owners, entrepreneurs, freelancers, etc. understand the importance of taking their company’s bookkeeping seriously. Especially for those businesses that are just starting out. The importance of having organized finances from the start cannot be emphasized enough!

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