So what is the true cost of outsourcing accounting or bookkeeping? CPA rates can appear daunting, especially when it’s time to write the check each month. As a business owner, your bottom line is extremely important. Some duties are more cost effective to handle yourself. However, have you ever done a true cost analysis of what it may be costing you to tackle your own books? Have you ever considered it may be hurting your bottom line to spend your weekends catching up on financial paperwork rather than hiring someone to handle that headache for you? Did I get your attention?
Whether you spend Saturday, Sunday or weekdays at 10pm when the kids are in bed on catching up with your bookkeeping, you may very well be hurting your bottom line. Because business owners only collect the paycheck the company can afford to cut, it’s easy to lose sight of what your hourly worth truly is. If you could spend Saturday networking with other local businesses or vendors, how much are those potential relationships worth? How much is an extra customer or more a month worth? How much more effective could you be during your normal work days if you were getting proper rest and downtime on those weekends and late nights?
Now that you’ve quantified what your time is actually worth, calculate how much time you spend on your bookkeeping. Cut those hours in half for the second part of our analysis. You chose your industry because you have a passion for it and you’re good at what you do. Same here. What you may spend 6 hours pulling your hair out on, we happily spend 3 hours on. So take your potential hourly rate and subtract out the cost of an outsourced bookkeeper. Are you losing money? Probably. Want to know for sure? Give us a call and we will crunch the numbers with you. It’ what we love to do!
Written by Lori Hawkins, Accountant