DIY bookkeeping is meant to save a small business owner time and money, but what our clients tell us is a different story.
We’ve had business owners share their top 7 frustrations with either doing their own bookkeeping or outsourcing their bookkeeping. This article covers these frustrations together with our suggestions on how to handle them.
Frustration #1: Time
“I’m wasting 2 hours per week on bookkeeping”
Have you ever watched celebrity chef Jamie Oliver prepare one of his ’15 minute” meals? He makes it look so easy and it only takes him 15 minutes because he’s an expert, but have you tried making those meals yourself? I know I have and they take me about an hour to prepare!
The same goes for bookkeeping. Doing your own bookkeeping takes time. If you aren’t a professional bookkeeper then chances are you are probably fairly slow, and it’s going to take you a whole lot of time to do it.There's only one resource that you can't afford to replace - your time. Click To Tweet
Let’s assume that you hired somebody to take over your bookkeeping… what would you do with that extra time that you’ve just freed up anyway? Would you do things you enjoy with loved ones or could you do other activities that you’re great at that contribute towards growing your business?
Ninja tip: Hire an expert bookkeeper and save yourself a whole bunch of time and headaches.
Frustration #2: Accuracy
“We made a bad business decision due to errors in our financial reports.
Do you worry about whether you’re doing the bookkeeping correctly? Are you paying the right amount of tax?
If you have to make business decisions like how much to invest in marketing over the next 6 months then you need accurate information to make those decisions.
Poor bookkeeping resulting in errors can mean bad business decisions.How much is poor bookkeeping costing you and your business? Click To Tweet
Ninja tip: Avoid bad decisions and make sure your numbers are accurate. Hire an expert to review what you’ve done. This will help you stay out of trouble with the tax office too.
Frustration #3: Price
“It’s too expensive”.
People used to complain about taxis being an expensive mode of transport and then along came Uber.
There is a better, more efficient way of doing your bookkeeping, but unfortunately a lot of bookkeepers are set in their more traditional ways, and aren’t familiar with tools like Zapier and Trello which can automate their internal processes.
Ninja tip: Ask your bookkeeper if they are using automation tools to speed up their internal processes (which saves you money).
Frustration #4: Unresponsive
“They take 2 weeks to respond to my questions ….”
Most bookkeepers are one man bands however, there are some bookkeeping companies with a team of employees.
The one man band juggling everything involved in running a sole trader business and a client base which can make them slow to respond.
Larger bookkeeping firms can have difficulties motivating their employees to provide the same level of service as the business owner, who is more passionate about their own business (and should be).
Both of these situations can result in slow response times.
Ninja Tip: Check with your bookkeeper what you can expect in terms of response times.
Here at Bean Ninjas we’ve implemented a combination of automated tools and systems, hiring motivated and trained staff in different time zones, and a positive customer-first culture in order to deliver speedy responses to our clients.
Frustration #5: Extra Charges
“My accountant charged me extra to fix the bookkeeper’s mistakes.”
Before an accountant can lodge a tax return the bookkeeping needs to be accurate. Unfortunately a lot of bookkeeping that gets sent to accountants needs to be re-worked.Accountants are far more expensive than bookkeepers. Click To Tweet
The business gets stung with extra fees and the accountant often can’t charge for all of the additional work so they’re not happy either.
Ninja Tip: Using a good bookkeeper can avoid these costly mistakes.
Frustration #6: Lack of current information
“I don’t get our March figures until May”
Bookkeepers want to spread their workload out across the month and businesses want their work completed as soon as possible. The two instances seem at odds.
We know how important it is for business owners to have current financial information. That is why we process transactions weekly for our larger clients and then focus on our small clients in the first week of the month.
Ninja tip: Clarify expectations around when you get access to your important financial information, and determine whether or not your bookkeeper’s turnaround time serves your needs.
Frustration #7: Bookkeepers who don’t understand online businesses
“My bookkeeper has never heard of tools like Stripe or Shopify and isn’t familiar with bookkeeping for e-commerce stores or handling Paypal accounts in multiple currencies”
The tools we use to do business are rapidly changing. Some bookkeepers are working hard to stay up to date with the latest technology and some are falling behind.If your bookkeeper is not staying up to date with technology trends then they are falling behind. Click To Tweet
Ninja Tip: If you are looking to outsource your bookkeeping and intend to use tools like Stripe, Shopify or other Xero add-ons, make sure to ask your bookkeeper about their previous experience with these tools.
Our Wish: Better bookkeeping for all
Please understand that this post is not a criticism of the bookkeeping or accounting industries. These are frustrations expressed by actual business owners and the intent of this article is to:
- Inform business owners of what to be aware of so that they can make the best choices for their own business when it comes to their bookkeeping;
- Encourage any bookkeepers or accountants who are not regularly looking at how to improve their business to do so. That way we can work together on improving our industry as a whole, and bookkeepers can be confident that they’re delivering a high-quality service that their clients will appreciate and value for many years to come.
We hope this has been a useful article. If you have any questions, please feel free to leave a comment below.
Originally posted 2016-03-23 08:37:56.
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