Over the last few posts, I’ve had a theme. A mantra, almost: “Time is our greatest currency.” Time is an essential resource, and it’s one that we cannot ever get back. I want to see everybody making good decisions about how they use their time.
In last week’s post I talked about the ways to maximise your time and maximise your profits. I want you to be running your companies as efficiently as possible because, as we all know, Time is Money.
When I’ve spoken to business owners or run polls about the areas they wish they could outsource, there’s always one common answer.
I’ve talked before about the importance of working within your Zone of Genius in order to move the needle towards profits. If you’re spending more of your time as a CBO (Chief Bookkeeping Officer) than a CEO, then it’s time for a reality check.
Unless numbers are really your jam, Quickbooks is not that Quick, so here are the 5 signs it’s time to outsource.
Sign number 1: Bookkeeping is taking up too much of your time
There’s a finite number of hours in the day so you need to be using them wisely in your business.
It’s not a sensible strategy to be spending the bulk of your time on things that you can outsource to a team member; your job is to focus on maximising profits!
I talked about how you should Delegate to Elevate in a previous post. The way to discover which of your daily/weekly/monthly tasks are the low hanging fruit that you can outsource is simple:
- Write down every task that has to be done in your business
- Circle the ones that are in your Zone of Genius; the ones that light a fire in you (and the ones that just absolutely cannot be delegated)
- Look through the remainder of the list and see which you can start outsourcing right away
I’m going to draw on my years of experience and say that for a lot of you, bookkeeping will NOT be circled! It takes up too much of your time because it’s not in your Zone of Genius, and you don’t know how to do it effectively and proficiently.
Sign number 2: You’re trying to scale
Are you bringing in a steady revenue month after month? Have you laid strong foundations for your business and brought in a team that works effectively? Do you feel ready to take your business to the next level?
Then I strongly urge you to outsource your bookkeeping!
Scaling up can be one of the most exciting times for your company – but also one of the riskiest.
I’ve seen businesses fail because they tried to scale too quickly. Or the wrong way. They’ve ended up in a worse situation than they started in – because they didn’t read the data.
So many entrepreneurs leap into scaling without taking the numbers into account. Maybe you’ve got a regular revenue stream. You might have even taken on extra staff in order to manage the increased workload. But if you’ve not considered someone to manage the extra financial reports then there’s a chance your attempts to scale will fall flat.
Sign number 3: Your bookkeeping isn’t up to date
If you’ve let your books get out of order then I beg of you to hire a bookkeeper!
I’ve managed a ton of ‘cleanups’ for companies over my career and, let me be honest – they’re a pain in the butt. When the numbers haven’t been tracked for months on end, the task of organizing everything is definitely going to eat into your time.
Now, I’m not saying you can’t take on a task like this yourself. If you have the time, if you’re not afraid of some math and some work, then you can absolutely DIY your bookkeeping. In fact, my Profit Perfect course will teach you everything you need in order to do this yourself.
But just because we can do something ourselves, it doesn’t mean we should. If you’re not in the right space to learn how to organize your books, please get someone else to.
You might not have the budget for a monthly ongoing bookkeeping service, and that’s fine. You can contact me to discuss a one-time job to set you up. But you absolutely must keep on top of your finances if you want to bring home profits.
Sign number 4: Your decisions are NOT based on your numbers
Whilst bookkeeping can be done yourself, it’s something you need to be consistent with.
Profit Perfect will give you the skills you need to manage your books effectively, but unless you commit to utilizing the data to make business decisions, you’re still going to struggle.
I see entrepreneurs start to take on team members, and then wonder what they should pay. Read the books!
Numbers don’t lie, and by consulting your financial data before you make any business decisions, you know you’ll be maintaining a profitable business.
If you’re not in the habit of using the data to guide your decision-making, then it’s time to outsource to someone who will.
Sign number 5: You’re scared of the IRS!
I know, I know. Audits are never fun and most business owners dread them.
I hate audits. I’ve been through them enough to know how tedious they are, and how much time they take away from running my actual business.
But I’m not scared of the results of the audit. I know I’ve kept on top of my books, crossed my Ts and dotted my Is. However inconvenient an audit might be, I am never worried I’ll be in trouble with Uncle Sam because I know what my financial data is telling me!
If you’re scared of what might be uncovered through an audit – then you need to hire a bookkeeper. Staying on top of your income and expenses – legally and legitimately – will keep you clean when the IRS comes to visit!
Owning a business can be hugely rewarding. But if you find that any of these signs apply to you then you need to consider outsourcing to a bookkeeper before the joy gets sucked out of what you do.
While you don’t need to outsource, and can take care of the books yourself, you must remember that bookkeeping is a necessity not a luxury.
Also, check out my website to learn more!