How To Choose The Right Small Business Bookkeeping Option
As a small business owner, you need to juggle a lot of different responsibilities every day. But does managing your small business bookkeeping and accounting really need to be one of them?
Many small business owners think that they have to perform all of the bookkeeping and accounting tasks themselves. Nope! Definitely not the case. There are a variety of different small business bookkeeping options. It’s simply a matter of figuring out what method can benefit your business the most.
Not sure what option is right for you? Here’s a roundup of some common small business bookkeeping options to consider:
DIY
This simply means that you’re doing all of your small business bookkeeping and accounting by yourself.
On the one hand, this approach is simple in that you don’t have to depend on anyone else. However, it can also cause plenty of headaches. After all, most small business owners have enough on their mind without having to deal with things like payroll and taxes on top of it!
Small business bookkeeping is very important to the health of your company, so it’s important to be honest with yourself: are you able to do the most effective job by yourself?
Hiring a part-timer
A part-time small business bookkeeper is an individual who will work on a part time basis to help perform accounting tasks for the company. It may be someone who works remotely, or someone who comes into an office on a part-time basis.
While a part-timer can definitely take some of the burden off of you, it’s important to be very careful about choosing the right person. All too frequently, part-timers can have a part-time mentality too, and managing them can be challenging.
SaaS
SaaS stands for “software-as-a-service,” and is also sometimes referred to as “cloud accounting software.”
In the context of small business bookkeeping, SaaS accounting software is an application that is hosted by a third party service.
On the positive side, SaaS bookkeeping can take some of the stress out of accounting for you. However, it still demands a lot of time and effort, so it’s not for everyone.
Repurposing another employee
Some small business owners choose to repurpose another employee such as the office manager or marketing coordinator as an in-house bookkeeper.
However, it’s important to note that time and money spent training someone in-house can add up. It can also have the effect of making the employee a “jack of all trades, master of none,” meaning that it can be hard to be effective in multiple roles at the same time.
In the long run, repurposing another employee to do your accounting could be eating into your profits and sucking up valuable time. That definitely won’t help your business grow!
Outsourcing
Outsourcing your bookkeeping can help your business in a variety of ways. Financial tasks can be automated, and necessities like payroll management and reporting can be simplified.
Many small business owners think that they’re too small to outsource, but it’s not the case at all. Actually, it may actually help you save time and money.
First, it can reduce the cost of in-house accounting. Additionally, it takes some of the burden off of you! This allows you to focus on your business’s primary objectives.
As an added benefit, outsourcing your small business bookkeeping is often easier to scale up than in-house options!
Streamline Your Small Business
There’s no simple or one size fits all solution for small business growth. However, outsourcing your bookkeeping and accounting can be a piece of the puzzle.
When you enlist the help of professionals, then your time is free to focus on what’s really important to you: helping your business flourish and grow. Sure, there will still be ups and downs. But you can remove accounting woes from the mix when you have help.
Interested in more tips to help you financially manage your business?
