Many people choose not to outsource the bookkeeping for their business. I spend a lot of time preaching about outsourcing those business processes that hold you and your business back from success. The things you hate to do and quite frankly are not very good at. I always say outsource the business tasks you struggle with and do what you are good at. So recently a home repair project (installing baseboard and door trim in my basement) came up. I thought to myself "perfect, great time to outsource this." But I didn't, I took the project on myself. About 10 minutes in I thought to myself "what the bleep am I doing, I'm not even taking my own advice on outsourcing." Why didn't I outsource the project? Maybe for the same reasons you don't outsource your bookkeeping.
To save money
Or so I thought. Many people may argue that I saved money by not paying a contractor to install the trim. My argument would be that I actually lost money. It is a pretty simple example of opportunity cost. The time I spent (and will continue to spend) is lost and can't be put towards the things I enjoy. Maybe I could have made more prospecting calls, worked more on our advertising plan, or spent more time outside; the things that I enjoy doing. Instead I fumbled through a project that I didn't have any experience with. Did it get done? Sure, but at what cost?
Listened to the opinions of others
I let other people influence my decision. People that are experienced and have the knowhow influenced me to take the project on myself. Maybe the trim job seems too easy to them to pay someone to do it, much like the simple bookkeeping projects we see every once in a while. Did my trim come out as good as if a professional had done it? Doubtful...actually a firm no.
Pride?
Maybe I just wanted to know that I could do this home repair project myself (I still had some great help along the way). Maybe you as the small business owner want to handle your own bookkeeping because you think you can. I would agree and recommend that you handle your own bookkeeping in the beginning stages of starting your business (here is my guide on how). Why only the beginning? I think that it is essential for a business owner to understand the financial reports of a business and how they are generated; handling your own bookkeeping will help you with that understanding.
My conclusion
I think most people don't outsource their bookkeeping because they think they will save money. However, when you consider the time lost and also money that may have to be spent in the future to fix your mistakes you have to wonder; did you really save money?
I am pretty close to done with this trim work and have an understanding of what goes into completing a job like this. When it comes up next time will I do it myself or outsource it? I'm not really sure, but I bet for the right price and quality of work that someone is getting paid and I'm going fishing.
Are you sick of handling your own bookkeeping?
Are you curious how much money we can save you by outsourcing your bookkeeping to us?