Bookkeeping services for small businesses is a valuable resource for the business owner. I have written a number of blogs pertaining to accounting and bookkeeping services and putting a value on one’s time. This article basically combines the two. At Fragnoli & Company, CPAs in Brentwood, TN, we all too often run across small businesses opportunity clients that are floundering and struggling to expand. The owner desperately wishes to expand his or her business but struggles to find the time and resources to do so. He or she has a solid business product or service and has a strong foundation; but, they find themselves stuck at the current revenue level. I frequently hear the line “there are just so many hours in the day” and they can’t figure out how to find the time to market and expand the business.
As I have said previously, too often the small business owner does not put a dollar value on his or her time. They try to perform as many tasks as they can to save money, but in the end, they end up costing themselves money. Bookkeeping services for small business is one of those functions. I frequently ask a prospective client if they do the maintenance on their car, do they perform their own IT functions, act as the vet for their pet, act as their own physician. Of course the answer is no. Then I ask, “why do you do your own bookkeeping work”? Are you a bookkeeper/ accountant? Did you suddenly get an education in accounting, payroll processing and/ or accounts payable processing? Of course, the answer is no. So I ask, “why do you try to perform these tasks on your own”? The reason so many small business owners choose to do their own bookkeeping is because there is excellent software out there to assist them with the process and at the base level the work is elementary. However, as the business grows and the transactions and systems become more extensive, the work becomes more complicated and the volume of activity requires a greater demand on the time of the owner to perform his or her own bookkeeping services. This is where placing a value on one’s time becomes essential. We at Fragnoli & Company, CPAs in our consulting engagements always tell the business owner to stick to what you do and hire an employee or outsource the other duties, do not wear all the hats. One of those functions is the bookkeeping services. Many small business owners have no idea how much time and energy they spend on doing their own accounting and do not know what the cost is to outsource that work to a quality CPA firm. Once we discuss this with them they are excited at the prospect of getting this responsibility out of their hands and into the hands of a professional.
By outsourcing the bookkeeping services, the small business owner has served two purposes. One, he or she has taken that function off of his or her plate. Secondly, the functions of business planning, tax planning, budgeting and forecasting have just been significantly enhanced and made much less costly in fees paid to the CPA or other advisory consultant. I tell clients all the time, the cost of having the business return prepared, doing year end tax planning, preparing budgets and forecasts and doing general business consulting at Fragnoli & Company, CPAs are much less expensive for clients that we perform the bookkeeping services for then those who attempt to do that function in house who do not have an in-house educated bookkeeper or accountant. By the time we clean up the books, make the necessary adjusting journal entries and complete management inquiries, the savings of performing bookkeeping services on his or her own is not much and the lost value of the owner’s time is significant.
So, if you are a small business owner who seems to have been stuck in the sand in your growth pattern and you want to expand your business, or if you are a small business owner who is starting out in a new business and you don’t want to take on that function (which is the smart thing to do right out of the gate) give Fragnoli & Company, CPAs a call at (615) 513-5522 or (615) 377-0705 and let us see what we can do for you. Bookkeeping services for small business is a significant part of our practice and we provide it for clients all over the Country.