How DIY Bookkeeping May Be Killing Your Business

How DIY Bookkeeping May Be Killing Your Business

Being a small business owner means solving problems, large and small. As challenges arise, how you face them can have a huge impact on the future of your business. While the harsh realities of business ownership may amplify the gravity of these problems and the decisions you make (especially when you consider that three out of five small businesses fail to survive longer than 6 years), it's important to maintain one thing as the most consistent, reliable aspect of your business: your bookkeeping.

In the struggle to make ends meet and keep your arms around every factor of your company, it makes sense that many startups and small businesses do their own bookkeeping in an effort to save money. The reality, however, is that DIY bookkeeping may be killing your business. Here's why:

You're Not Fully Focused on Your Other Responsibilities

If you're devoting several hours per week to maintaining your books, you're detracting from the time you have to focus on other aspects of your business. As a small business owner, you're a manager, marketer, leader, HR rep, sales lead, advertiser, customer service representative, and creative director - and those are just a few of the hats you wear.

By doing your own bookkeeping, you'll certainly save a few bucks, but the time taken away from your other tasks may cause your work to suffer.

Your Cash Flow Pipeline is Struggling

Even if you have checks coming in by the bucket load, keeping abreast of client billing issues, outstanding invoices, and late payments are likely getting missed. Why? Because following up through the various notification avenues and keeping a strict billing and reminder schedule is a full-time position - not something you can do on a whim after-hours.

Businesses of every size struggle with cash flow issues, but the dangers of missing payroll or vendor payments can disrupt your continuity of business and ultimately the future of your company as a whole.

If you're struggling to keep up with your accounts receivable, billing, taxes, payroll, or bookkeeping, maybe it's time to bring in a partner that specializes in helping small businesses grow and prosper. Clients A.R.M. can take the stress of the books off your desk and manage the nitty-gritty details of your business so you can focus on ensuring its success into the future. Contact us today for a free consultation and to learn more about our process.

Image source, labelled for reuse