I don’t get pedicures very often. Pretty much only when I’ve been a bridesmaid or going on a big vacation. But every time I’ve been pregnant (I have 5 kids), I treat myself to pedicures in the last half of my pregnancy. Why? Because I’ve done all the work of carrying a baby around for 9 months - why should I have to DIY painting my toenails? It’s awkward and annoying, and I would just rather pay someone else to do it.
Do you ever feel that way about your bookkeeping? It's awkward and annoying and you would rather pay someone else to do it. Hiring a bookkeeper is a bit more of an investment than getting a pedicure. Here are 7 questions to ask yourself before hiring making the switch from DIY to outsourcing bookkeeping.
Reason #1: I can afford it.
Hiring a bookkeeper costs money, and you need to decide if the return on investment is worth it. Here’s very general criteria to consider: 1) you’ve made than $100,000 or more for 2 years in a row AND 2) you have no desire or time to DIY your books anymore.
Hiring a bookkeeper will save you money and time (which we all know is money). They will be a second set of eyes on your books and will look for ways to cut costs, save on taxes and bring in more income. By NOT using a bookkeeper you might actually be losing or missing out on profit.
If your income is not consistent yet, stick with DIY until you can afford to delegate it. Even if it's not your favorite task, try to be as consistent as possible. Here’s a great money organizer system from Jamie at the Modern Tog. I used this in my photography business before I knew how to use Quickbooks.
Reason #2: I hate bookkeeping OR I don't mind bookkeeping but I don't have time anymore.
You might be a 6 figure photographer and totally geek out about your numbers and budget. More power to you! If you've got a good system going, no need to mess with it.
On the other hand, maybe you would rather get a root canal than do your books. You procrastinate as long as you can. Why stress over something that drains you? Hire it out so you can focus on what energizes you.
Reason #3: My business is sophisticated and professional, but my books are embarrassing.
If you would describe your books as a "mess" or you're embarrassed about them, consider delegating. If you were to be audited, you need to have a clean set of records. You also need to know key numbers so that you can strategize and make smart decisions in your business.
Your bookkeeper can make sure everything is 100% up to date and accurate. They will also make it so you can be as hands off the details as possible and able to keep your eyes on the big picture.
Reason #4: I am terribly inconsistent with tracking my income and expenses.
Most photographers I know have great intentions at the beginning of the year. But when it gets down to it, they are busy people. And the last thing they want to do on a Saturday is organize receipts and do data entry. So it gets put on the back burner until the busy season ends.
Here's the thing though: it's hard to have a good picture of your business if you're only doing your books once a year. You'll have no idea where you stand throughout the year.
A good bookkeeper will have their eyes on your accounting consistently. And they'll give you regular updates throughout the year so you know exactly how your business is doing.
Reason #5: I get confused and overwhelmed by the numbers. I don't know what I should be looking at.
Even if you do have very accurate records, you might still be confused and unclear about how your business is doing. A good bookkeeper will not only keep tabs on all things financial...they will actually interpret the data for you. They will give recommendations based on your goals and the numbers.
You'll be empowered to make decisions based on the actual numbers. You'll be able to plan ahead and stay in track with your goals.
Reason #6: I have bad habits.
I don't mean nail biting. But do you mix business and personal expenses? Do you save your receipts? Do you do one big catch up week at the end of the year? Do you guess at pricing, or guess on questions you don't know the answer to?
A bookkeeper will keep you accountable to good habits. They will be at the top of their game with IRS requirements and best practices. One tip: Make sure you choose a bookkeeper you click with so they don't annoy you!
Reason #7: I'm getting ready to grow and want to be proactive about getting things ready.
If the bookkeeping piece of your business was taken off of your plate, what would you do with that time and brain space? Do you feel like the stress or task of keeping accurate records are holding you back from your potential? It's hard to dream and plan when you feel like you're in a fire drill most of the time. Where do you want to be next year? In 5 years?
A bookkeeper will take the financial stress off your plate so that you can move forward towards your goals. You can be free to do your best work and not worry or stress about your business.
Take some time to consider these questions. If you think a bookkeeper might be the next move, Tidy Books offers a free 30 min consultation to talk about your books.