In the whirlwind of managing a small business or franchise, bookkeeping frequently ends up on the back burner, inadvertently overlooked despite its critical role in keeping operations smooth.
Keeping track of your business financials, from sales to expenses, is not just a legal requirement—it’s the backbone of your business’s financial health. Many owners grapple with the decision between tackling their franchise or small business bookkeeping themselves or outsourcing it to professionals.
Let’s uncover the disparities between DIY and professional bookkeeping while highlighting the invaluable benefits that a professional service like Ceterus can bring to your business. Keep reading for further insights!
DIY Bookkeeping Method
DIY bookkeeping may be a cost-effective option and seem like a good idea when you’re first starting your business.
But reportedly, one-third of American owners rate ‘everyday accounting tasks’ at or near the top of a list of things they avoid doing. Why is that? Well…
Handling your books yourself involves keeping track of every financial transaction that occurs within your business, like sales, purchases, payments, receipts, etc. It’s not simply about recording numbers; it’s about categorizing them correctly, reconciling bank statements, managing invoices, and ensuring everything balances at the end of the day.
While there is a lot of software available to help with these tasks, they require a steep learning curve. And even with these tools, the responsibility for accuracy falls on you. A single misstep like incorrectly categorizing expenses, missing essential tax deductions, or overlooking transactions can lead to significant issues like financial discrepancies, tax penalties, paying too much in taxes, and even legal issues.
Moreover, DIY bookkeeping is often far more time-consuming than most business owners anticipate. It’s not just about entering data into a system—it’s about understanding what the data means, staying updated with tax laws, and being able to generate meaningful financial reports. All these tasks could eat into the time you could otherwise spend on growing your business.
Hiring a bookkeeper or bookkeeping service for your business can have several benefits. As hinted at above, one of the primary reasons is that it allows you to save time, which you can then use to focus on the bigger picture of evolving your business.
As your business grows, you may find that complex financial issues arise, such as managing cash flow, keeping track of expenses, and preparing for tax season. By delegating these tasks to a dedicated bookkeeper, you can ensure that your books are accurate and up-to-date, giving you peace of mind.
A great bookkeeper can offer expert insights into your business’s finances. They will take the time to understand your specific financial needs and provide you with customized solutions that meet those needs.
Additionally, they will be knowledgeable about basic accounting concepts like understanding undeposited funds or the complexities of sales tax, inventory management, payroll allocations, accrued tips, fixed assets, intangible assets, inter-company accounts, bank loans and financial statements.
Pro Tip! Even if you hire a bookkeeper, you shouldn’t completely turn a blind eye to your business finances. While they may be experts in accounting, they may not have a complete understanding of your business’s operations. Therefore, you should still pay attention to your books and review your financial statements periodically to ensure that your books accurately reflect your business’s financial situation and you identify the right questions to ask your bookkeeper.
So, staying in the know regarding your business finances and working closely with your bookkeeper will help you keep an ongoing picture of your financial situation, and you can make informed decisions about your business’s future. This includes knowing when to invest in new equipment, hiring new staff, or expanding your business.
- DIY Bookkeeping: While it may seem like a cost-effective option initially, taking on bookkeeping tasks yourself can be time-consuming, prone to errors, and a potential drain on your resources.
- Professional Bookkeeping: Engaging a bookkeeper or bookkeeping services like Ceterus brings many benefits, including time savings, expert insights, and financial accuracy, allowing you to focus on your business’s growth.
Which Option Is Right For You?
If the DIY bookkeeping approach has surfaced the following financial concerns:
- You’re finding it hard to manage your books accurately and effectively.
- You’re looking to get a better understanding of your business’s financial health and achieve your growth targets.
- Or perhaps you need a reliable and trustworthy partner who can handle all your financial needs seamlessly.
…then we have a solution for you.
At Ceterus, we understand these challenges because we have been helping our customers solve them every day. We build real relationships with our customers and take away the hassle of managing and maintaining accurate books, planning taxes, preparing tax reports, and forms, optimizing financial performance, or reporting financials to stakeholders.
Ceterus As Your Bookkeeping Service
Our bookkeeping solution delivers accurate and timely financial statements, supported by brand and industry benchmarks that help you run your business. Here are some key features:
- Get P&L and Balance Sheets in consistent, brand and industry-compliant formats.
- Access financial statements anytime, anywhere through Edge Web and Edge Mobile.
- Receive consultations from a dedicated financial controller and tax advisor.
- View individual and consolidated performance across locations.
- Leverage our experience across 100+ brands and small businesses for peace of mind.