Outsourcing bookkeeping – the decision that splits business owners

Where do you stand?

Any business owner knows, there never seems to be enough hours in the day to do what you need to, and that time is the one commodity you can’t create more of … or can you?

The strategic decisions made by business owners can ‘create’ more time or, at least help maximise your 24 hours in the day. One strategic decision is whether you choose to outsource bookkeeping.

Let’s talk about investment in outsourcing bookkeeping services, a choice that divides business owners into two distinct camps.

The two types of business owners

On one side of the divide are business owners who recognise they need help. They understand a bookkeeping service can bring substantial value to their business and look beyond immediate expenditure, and understand the broader spectrum of benefits that build up over time.

The other side shows more hesitance to outlay the perceived expense, primarily thinking the investment in a bookkeeper doesn’t have direct revenue generation rather than considering the indirect benefits.

Why is there a difference in the way we think about outsourcing?

This difference often shows a deeper mindset to business growth and efficiency, possible aligned with the difference between a growth mindset and a scarcity mindset. Business owners in the growth mindset camp may appreciate the potential for bookkeeping services to ‘create’ more time by optimising financial processes and liberating business owners from compliance and the fiddly ins and outs of data entry, reconciliation and ATO requirements to concentrate on core, revenue-generating activities.

Find out more about the Psychology of money in our blog:
https://tallyupbooks.au/what-is-the-psychology-of-money/

The Cost of Not Outsourcing Bookkeeping

Wasted Time: If you don’t have a bookkeeper, you’re probably spending a lot of time on the books from data entry, correcting errors, doing BAS, payroll, TPAR etc instead of working on your business or enjoying life outside of it!

All those hours spent could be used for planning, reaching out to new customers, improving your service, doing your day job or finding balance outside of work.

Too Much Stress: Trying to keep up with all your financial duties and compliance on top of everything else can really wear you down, and unfortunately if you miss errors or necessary deadlines there may be penalties. It’s stressful, and that stress can mess with your head, zap your energy, and make it tough to make smart decisions.

Easy to Mess Up: Financial stuff can get complicated, and if you’re not an expert, it’s easy to make mistakes. Messing up on compliance, taxes or missing out on money-saving can really set you back.

Missing Out on Growth: Without someone who understands the compliance obligations of your business, you might not see ways you could be saving money or making your business run smoother. That means you might not be as successful as you’d like to be.

The scarcity mindset group might be unable to look past the upfront costs, and in turn overlook the strategic advantage of fortifying their business’s financial health and operational efficiency.

Some of the non financial benefits of outsourcing bookkeeping

Peace of Mind: Entrusting your financial affairs to a professional bookkeeper gives you a sense of security and confidence. We often say you can’t put a price on peace of mind. Outsourcing here let’s you have the time to redirect your focus towards the strategic and creative aspects of your business.

Strategic Financial Guidance: Beyond just managing your transactions bookkeepers can serve as strategic advisors, offering insights on budgeting, forecasting, and profit planning. Their expertise can show areas for improvement that you might not have picked up.

Improved Credibility: Accurate, timely, and professionally managed financial records improve your business’s credibility among staff, customers, the ATO, banks, and beyond. Reputation as a business owner matters.

Scalability: A professional bookkeeper can be an essential partner in managing growth or your business evolving (expansion of services, team, services and more). They make sure your financial processes and systems evolve with your business, facilitating smooth scaling and helping you avoid the challenges of expansion.

Freedom: Maybe the best benefit outsourcing bookkeeping is the freedom it creates! When you know your financials are running like clockwork you can invest your time where ever you want – revenue generating jobs, improving or expanding services, working shorter hours to name a few, the choice is yours!

That’s a wrap

Being able to focus, innovate, and plan for the future is key. Good bookkeeping doesn’t just keep your finances in line; it frees up your most valuable asset—your time.

So, when you’re thinking about all the decisions you have to make for your business, remember how much value a bookkeeper can add. It’s not just another expense. It’s an investment in making your business better and your life a little easier.

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Ready to take your books and business to smooth operator level? Smart choice!

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Ready to take your books and business to smooth operator level? Smart choice!

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Ready to take your books and business to smooth operator level? Smart choice!

Contact Us

Ready to take your books and business to smooth operator level? Smart choice!