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Bookkeeping – should you be doing it yourself?

Bookkeeping is such an important part of your business. It provides you with vital information that you need in order to grow your business. However, is doing the bookkeeping yourself really the best use of your time? As a business owner, you need to spend your time growing your business, taking care of your client and focusing on the future of the company.money_time_value_white_dice_400_clr_2636One big factor that many people forget to consider is if they have the knowledge to even do the bookkeeping in the first place. Bookkeeping is more than just income and expenses. You may have prepayments; you may have a loan or a business credit card which all have to be handled slightly differently. It is not just a case of recording income and expenses – there is more to it. For example, your credit card account needs to be listed as a current liability; it is not an expense on the Profit and Loss Statement. I have seen people recording expenses twice – once as they pay the credit card and once as they recorded the receipts for the charges on the credit card. The effect of this is that you are showing less profit than you are actually making. If you have a business loan it is so important that you record the payment correctly broken down to the principal and the interest and that the loan is recorded as a liability on your balance sheet. It is these little details that can have a big impact on your financial statements if the transactions are not recorded correctly.

Another aspect to consider is the accounting software that you would use to record your bookkeeping. QuickBooks is a great piece of software that we use here at Abacus Bookkeeping; however, you need to know how to use it in order to get the most out of it. The information that you get out of it is only as good as the information that you put into it!

Then of course you have to look at the cost of your time if you did the bookkeeping as opposed to the cost of hiring a bookkeeper to do it for you. A Professional Bookkeeper will have the software, the knowledge and the time to do the work for you and when you consider your time factor into this it will be cheaper to hire someone to do this for you! Plus a lot less stress off your shoulders!!!

Take a few minutes today to consider how long it takes you to do your bookkeeping each month and multiply the number of hours by your hourly rate – that is how much it costs to do your bookkeeping each month. Maybe you are not doing your bookkeeping at all and you need to consider hiring someone to get it set up and kept up to date so that you know the financial health of your company.

Bookkeeping is so important – please do not ignore it!

16 Responses to Bookkeeping – should you be doing it yourself?
  1. Lianne-Carla Savage
    September 11, 2013 | 10:30 am

    Very important considerations to make

  2. Frances
    September 11, 2013 | 11:37 am

    I'm a firm believe that bookkeeping should be outsourced. Let the accountant deal with that and focus on your business! 🙂 (unless your business IS bookkeeping, then yes, definitely focus on that! 😉

    • Abacus Bookkeeping LLC
      September 13, 2013 | 7:04 am

      Exactly! Why stress yourself as a business owner trying to do something that you do not totally understand!

  3. Beth Blacker
    September 11, 2013 | 1:11 pm

    I agree wholeheartedly. There is never a reason to force yourself to do something that ends up truly costing you too much time which as we all know ends up costing you money.

    • Abacus Bookkeeping LLC
      September 13, 2013 | 7:03 am

      That is so important for businesses to realize that it is their time and money that they have to focus on and bookkeeping is part of that.

  4. Jackie Harder
    September 11, 2013 | 3:17 pm

    I am a big believer in paying experts to do things you cannot do well, or don't have the time or energy to do. In my case, that's housekeeping. 😉

  5. Kim Garst
    September 11, 2013 | 5:05 pm

    You make an excellent point with this article, Kerry! Most, even if they are doing or think they can, are simply not qualified to do their own bookkeeping! 

    • Abacus Bookkeeping LLC
      September 13, 2013 | 7:02 am

      Exactly Kim! There is so much more to bookkeeping than people realize and until they start making mistakes that their tax accountant wil point out they have no idea they are making errors.

  6. Shelley Webb
    September 11, 2013 | 5:39 pm

    There was a recent article in the Huffington Post (just this week) that recommended that bookkeeping be one of those activities that should be outsourced (along with social media).  I agree.

    • Abacus Bookkeeping LLC
      September 13, 2013 | 7:01 am

      Thanks Shelley – I looked that up and find the article – appreciate you letting me know.

  7. Lorii Abela
    September 12, 2013 | 8:51 pm

    Very informative post! Bookkeeping is indeed essential and hiring a professional to do it is the best thing to consider. How much is the average rate for a bookkeeper?

    • Abacus Bookkeeping LLC
      September 13, 2013 | 7:00 am

      It depends on the package and the number of hours that is needed to do your bookkeeping. Each package is built to fit the client’s needs. Bookkeeping needs cary so there is no one size fits all option. 

  8. Edmund S. Lee
    September 12, 2013 | 8:51 pm

    It's never a good idea to leave bookkeeping far behind. If you have no time to do it yourself then it's best to leave it with the ones who can do it for you, or better yet, hire someone who could keep you on track. 

    • Abacus Bookkeeping LLC
      September 13, 2013 | 6:59 am

      Great point – letting your bookkeeping get behind is nver a good idea – thanks Edmund!

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