Small-business owners often get themselves into trouble by taking on too many responsibilities. Bookkeeping is one area especially prone to DIY-itis. The consequences can range from burnout for the owner to stunted growth for the business. Learn from other entrepreneurs in these examples from some of our recent case studies.
Can You Scale for Success?
Some business owners with a knack for numbers find they can do their own books quite well during the launch phase, when the volume of work is low. But what can start out feeling like a cost savings can end up feeling like a quickening treadmill as business picks up.
It worked that way for Adam Merrill. In 2016 he launched a custom home building business in Florida. With a modest goal of five homes per year and what he called an "accounting mindset," he assumed he could do the books himself. But as his business boomed, Merrill quickly revised his projection to 12 homes a year. Before long he was devoting a full day each week to bookkeeping rather than focusing on the growth of his business.
He knew that path wasn't sustainable, so he outsourced his bookkeeping to Supporting Strategies. He called it "one of the best decisions I've ever made." (For further details, read the complete case study.)
Let People Do the Job You Hired Them For
A Louisiana custom home builder had a similar experience. But in this case, it wasn't the owner who was spending too much time on the books. Home Building Specialist Nancy Bernard found that as the business grew, the tedious job of invoicing was eating into the time that she wanted to spend with clients. She realized online tools and cloud technology might be the answer, but she lacked the time and expertise to implement them. "That's why we reached out to Supporting Strategies," she says.
The result? "Supporting Strategies has completely relieved the burden of bookkeeping on a growing small business," Bernard says. (For more information, read the complete case study.)
Save Money as Well as Time
Saving time is one of the best reasons to outsource your bookkeeping. But you can also save money by not having to hire a full-time bookkeeper. (Nor do you have to take on the added responsibility that comes with managing another full-time employee.)
In addition, with outsourcing, you know your books will always be up to date and in line with generally accepted accounting principles (GAAP). That means your business will be audit-ready and will have no trouble working with tax accountants and other service providers, such as payroll companies.
In fact, there are so many reasons that outsourced bookkeeping services make sense for small businesses, it's amazing that more entrepreneurs don't do what Jeff Davis did. A self-described "accounting train wreck," Davis brought in Supporting Strategies to handle his bookkeeping from day one when he launched his executive networking startup. (Here's the case study.)
Part of the consulting service Davis offers executives is a course on how to be more efficient with their time. "I'm sure I'll be mentioning Supporting Strategies plenty of times to anybody who goes through that course," he says.Outsourcing bookkeeping can help entrepreneurs get started, scale for growth, and ensure compliance. Although business owners need to have a strong DIY mindset, it is best to leave bookkeeping to the experts.