She has been in business for over three years, each year growing measurably. Inevitably, the bookkeeping needs were increasing. Each month, the pile of bookkeeping documents, became more chaotic and disorganized, compiling each year with the next. She planned to get it under control since she enjoyed doing bookkeeping, along with managing a growing business. The plan, to get caught up in the ‘off-season’. Turns out, she is better at managing her business and her ‘off-season’ never came. Knowing her frustration, friends and family volunteered to helped get it in order. After all, how hard could it be, right. It wasn’t rocket science to enter in receipts and balance a checkbook. Downside, a ‘volunteer position’ meant no time commitment or dedication. The bookkeeping wasn’t getting done and what had been done, was wrong. She then decided to hire someone. The pay was minimal, and the skill level wasn’t ideal, but she thought this is the level she could afford and would make it work. Again, the information was not entered correctly. She hired another person with a bit more experience. Guess what? The new employee was not the answer. If it was possible, the bookkeeping was in more disarray than ever, and it just kept accumulating. As a result, it was necessary to file an extension on her tax return each year. Avoiding it at all cost, she was forced to deal with the piles of receipts at the 11th hour. The mental strain caused her to rush through the piles. She is most certain she did not capture much of the tax return eligible information.
What led her to make the call? Ultimately, ironically, the same reason she avoided the call. The cost. But this time she considered the cost from the other side of the perspective. She accepted what the numbers were indicating, it was not encouraging. The years of improper bookkeeping procedures had cost more than creating processes and developing a solid procedural foundation. The cost was more than the monthly expense. She wanted to grow her business. It was time to ‘act’ like she was a ‘real’ business owner and handle the bookkeeping in the same manner. She deserved accurate timely financials that would complement plans for growth.
Cost can be more than just immediate cash flow and budgets. Consider the compilation of the money lost. In my company, often we discuss what makes a business a real business. I mention it in most conversation I have with business owners. We sum it up by how dedicated the Owner is to accuracy and timeliness of the company financials. It may take 3+ years to understand the importance, we hope with minimal cost. Those that don’t see the need or simply don’t put urgency to managing the bookkeeping, most often are on the path of a hobby.
If you need more time on your calendar and more profits in your business, use an expert in the areas that support your goals. Consider the complete cost to your company. Contact an expert. Most often the cost will be a savings.