I know bookkeeping isn’t everyone’s jam, but it sure is mine, and what I’ve learned from my clients over the years is how important it is for small business owners to know how to do their own bookkeeping. It not only keeps your costs down but also helps you really understand your business finances so you can make the right decisions.
In this post, I am going over five reasons why you should be your own bookkeeper and the consequences of ignoring those reasons.
Ready to learn more? Then keep on reading.
Be Your Own Bookkeeper Reason 1: Cost
It costs a lot to have someone else do your numbers for you…and as small business owners, I don’t need to tell you that every dollar counts.
It seems tempting to hire someone because you might not feel confident in doing the books yourself, but trust me, those dollars spent on bookkeeping add up.
I know some bookkeepers charge really low rates so you think it’s a justifiable expense, but remember, just because it’s cheap, it doesn’t mean it’s the best. You get what you pay for…and even sometimes when you pay the premium price you still don’t get the quality you need.
Also…when we hire bookkeepers, we need to find people who can really explain and break down the reports on our finances so we understand them completely. A lot of times that doesn’t end up being something that is included in bookkeeping services, leaving business owners in the dark on their numbers.
In my opinion, it’s worth it to spend the money to educate yourself on your books instead of passing it off to someone else when you’re only hitting a certain income threshold.
Be Your Own Bookkeeper Reason 2: Understanding
Plain and simple – you have to understand what you’re looking at when you go over your numbers, not just trusting that someone else is handling everything for you.
Having a solid understanding of the money coming in and the money going out allows you to make the best decisions possible for your business today, avoid bad ones (I cannot stress that enough) and also plan for the future.
More understanding = greater success.
That is why I offer things like the Number Nerd Bookkeeping Academy. It helps business owners get that solid understanding of their numbers, so when they look at the books they know EXACTLY what is going on.
Be Your Own Bookkeeper Reason 3: Awareness
This one is closely tied to Reason 2…because understanding creates awareness.
Do you ever wonder if maybe there is a chance that you’re missing out on money you could be making or spending too much on something? Well, being aware of your numbers and what they mean can help prevent situations like that.
Giving your numbers a quick once-over every month doesn’t give you enough awareness to…
- See if there are ways things can be adjusted so you’re making more and spending less
- Identify problems and fix them quickly
- Find new opportunities to create more income
And ultimately, that’s what we want you to do….make money!
Be Your Own Bookkeeper Reason 4: Planning
The more you know about bookkeeping, the better positioned you are to make good decisions. When you know your numbers inside and out you can determine if your marketing is working, whether you’re charging enough money or spending too much time on business activities not contributing to your bottom line.
Say if you want to invest in a product or service, or you want to focus more on one aspect of your business, planning is the only way to make those things happen successfully.
When you do your own books, you’re getting down and dirty with your numbers. You know your analytics and that makes it SO much easier to plan and strategize for how you want to move forward, invest in your business and spend your time.
You didn’t start your business willy nilly, without a plan. You know how important it is to have solid plans in place rather than making knee-jerk decisions without all the information. Knowing your books will ensure you make solid, informed decisions that set you up for success.
Be Your Own Bookkeeper Reason 5: Ditching The Fear
When you fear your books, you’re not going to dive in and really commit to getting to know them the way you need to in order to make the best decisions possible.
Plus, nobody likes being afraid! It’s not a fun feeling and it holds you back from up-leveling your business!
Let’s end the guessing game on your numbers too! No more guessing on whether or not you are doing things the right way.
The more you know, the less fear you will have and you’ll become empowered to make solid, confident choices or ask for help when you need it! Fear has no place in your business and by kicking it to the curb, you will become a better, more successful CEO.
Ready to Become Your Own Bookkeeper?
Most businesses that fail do so because they don’t have a handle on their numbers. I have made it my mission to try and prevent that from happening. Everyone needs education around their numbers so they’re able to notice problems and clean up any trouble spots or dig into things that don’t look right.
And there’s no shame in needing a little help! None of us are born with all the bookkeeping knowledge pre-programmed into our brains. We all learn it at some point.
I created the Number Nerd Bookkeeping Academy for business owners just like you, who need that guidance and to empower you to know how to do your own bookkeeping. It’s an online academy that gives you the education, know-how, on a weekly, monthly, quarterly and annual basis to get and keep your bookkeeping in tip-top shape.
Your business is your livelihood. You owe it to yourself to understand it completely so you can take charge of it and grow. Learn more about the academy now.