As a small business owner, running a business may have been your lifelong dream, but keeping track of your finances can feel like a never-ending puzzle. So, here's the big question for you: Should you handle the bookkeeping yourself, or is it time to bring in a professional? Let's explore the pros and cons of each option to help you make the best choice for your business!
DIY Bookkeeping
Pros:
- Cost-Effective: By handling your own bookkeeping, you save money that would otherwise be spent on professional services. This can be a big benefit, especially for businesses with tight budgets.
- Full Control: When you manage your own books, you have complete control over how your financial records are kept and organized. This can be reassuring if you prefer having a hands-on approach to every aspect of your business.
- Learn Valuable Skills: Managing your own books helps you learn important financial skills that can benefit you in other areas of your business. You become more familiar with how your business earns and spends money.
Cons:
- Time-Consuming: Bookkeeping can take up a significant amount of your time, which could be spent focusing on growing your business. If you're not efficient, it may take longer than expected to keep everything up to date.
- Risk of Mistakes: Without a professional's expertise, there is a higher chance of making errors in your bookkeeping. Mistakes in financial records can lead to misunderstandings or issues with taxes and compliance. Here are the top 5 bookkeeping mistakes we’ve found that business owners make and tips on how to avoid them.
Professional Bookkeeping
Pros:
- Expert Help: Professional bookkeepers are experienced in handling financial records accurately and efficiently. Here at Frankly, we specialize in helping small businesses. We’ll record your daily transactions to help you better understand your financial situation.
- More Free Time: Outsourcing bookkeeping tasks allows you to focus on what you do best, running your business. This can lead to improved productivity and business growth.
Cons:
- Less Control: By handing over your bookkeeping to someone else, you may feel less in control of your business's financial details. It's essential to find a trustworthy professional (like the Octo-pod!) to manage these sensitive tasks.
- Communication Needs: Working with a professional means you must maintain good communication to ensure your bookkeeper has all the information they need, which can be a new responsibility.
Quiz: Which is Right for You?
Not sure which is right for you? Take our six-question quiz to see which option might be best for your business
Augie's Advice
Both DIY and professional bookkeeping have their perks and challenges. The choice depends on your specific business needs, your comfort with financial tasks, and your available resources. By understanding the pros and cons, you can make an informed decision to ensure your business's financial success.
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