Cutting Your Bookkeeping Fee Can Cost You

Recently, a client decided to slash their expenses, including our bookkeeping services. Three months later, they returned. Why? Because cutting corners with bookkeeping often backfires.

Here’s what happened to her:

1. Initial Research: She spent a day Googling due dates, Xero, and bookkeeping basics.
2. Time Management: Scheduled 3 hours a week for bookkeeping, later realising she needed 5.
3. BAS Submission: Submitted her first BAS but missed potential claims.
4. Inaccurate Reports: Pulled an inaccurate profit and loss report due to unrecorded expenses.
5. Unexpected Costs: Faced an unexpectedly high BAS bill and went on a payment plan.
6. Budgeting Struggles: Created a budget but wasn’t confident in her figures, leading to more Googling.
7. Delayed Launches: Delayed a new offer launch, resulting in lower sales.
8. Forecast Errors: Realised her forecast was off while working on her current BAS lodgement.

Then she reached out to us again.

The Value of Professional Bookkeeping

You can spend hours learning, but a qualified bookkeeper’s experience is invaluable. This expertise contributes to your business’s financial health. Cutting bookkeeping costs can lead to cash flow problems, inaccurate financial insights, and stress. In the long run, it can mean the difference between thriving and struggling.

More Than ‘Just’ Numbers

Bookkeeping provides real-time insights into your business’s health, steering it in the right direction. Disorganised finances take an emotional toll. Many business owners outsource bookkeeping to reduce overwhelm, save time, and focus on their strengths. Before you cut bookkeeping costs, remember why you outsourced it in the first place.

The Real Cost of DIY Bookkeeping

Hidden Costs and Time Drain

While DIY bookkeeping might seem like a cost-saving measure, it often results in hidden costs. The time spent learning and managing your books could be better spent on growing your business. For instance, our client found herself dedicating more time each week than planned, leading to stress and frustration.

The Impact on Financial Accuracy

Inaccuracies in bookkeeping can have serious consequences. Missing out on claimable expenses or misreporting financial data can lead to higher tax bills and potential penalties. Our client’s experience with an unexpectedly high BAS bill is a perfect example of how small errors can escalate into significant financial issues.

Emotional and Mental Toll

Managing finances without professional help can be overwhelming. The stress of ensuring everything is accurate and up-to-date can take a toll on your mental health. Many business owners outsource bookkeeping to alleviate this burden and focus on their zone of genius.

The Long-term Benefits of Professional Bookkeeping

Accurate Financial Insights

A professional bookkeeper provides accurate financial insights, helping you make informed decisions. This clarity can be crucial for strategic planning and identifying growth opportunities. Our client’s experience shows just how professional bookkeeping can prevent those small mistakes, that cost big in the long run. 

Efficiency

Outsourcing your bookkeeping allows you to reclaim your time. This enables you to focus on areas where you can add the most value, like product launches! 

Less Stress

Knowing your finances are in expert hands is an instant stress reliever. The peace of mind is priceless.