On the one hand, it’s almost a prerequisite for entrepreneurs of all types to have that “can-do spirit.” That sense that nobody else sees things quite like they do so, whatever it is they want to accomplish, it becomes something they know they’ll have to do themselves. In a lot of ways, this is an asset as it’s a big part of what has contributed to your success thus far.
On the other hand, this type of mentality can certainly get people into trouble when it comes to the day-to-day necessities of actually running a business – with bookkeeping, accounting, and other financial matters being chief among them. While there may be a time when you can handle your books yourself, that time will likely pass. There are a few key warning signs in particular that you should watch out for to help clue you in as to when that becomes the case.
DIY Bookkeeping Warning Signs: Breaking Things Down
Maybe the most immediate sign that you should stop doing your own books involves situations where you feel like you’re constantly dealing with last-minute tasks and missed deadlines.
Filing your taxes late because you were too overwhelmed during a year is one thing. Having this crop up multiple years in a row is another matter altogether. Likewise, if you don’t consistently reconcile your books at the end of every month, you could wind up in a situation where you think you have access to more money than you really do, or you’re experiencing cash flow issues without realizing it.
Not keeping up with these tasks because you “didn’t have enough time to do so” isn’t an excuse. If anything, it’s a major indicator that it’s time to bring in someone else to make sure the job gets done properly.
Speaking of not having enough time, this is also another warning sign that you should stop doing your own books – albeit from a slightly different perspective.
If you’re still trying to handle all of your own bookkeeping, it’s safe to say that it’s probably taking you far longer to complete straightforward tasks than it would an expert. Every minute that you’re focused on this is a minute that you’re not making money for your organization. Simply freeing yourself from the burden will allow you to turn your attention towards more essential matters, while also giving you the peace-of-mind that only comes with knowing that the financial elements are being handled by someone with the right expertise.