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Thursday 8 September 2011

Time To Get The Source Out ?

I come across many clients who are just starting out in their new business. Understandably money is tight and they want to conserve as much cash as possible. One of the ways they do this is o do their own bookkeeping and VAT, and leave the annual accounts and tax returns to the likes of me!
This makes sense, as in the early days you may not be that busy in terms of trading, so have more time to devote to non-core activities such as bookkeeping. But as the business develops, and you get busier in the sales activity of your business, it makes no sense to be doing your own bookkeeping. The time spent would be more efficiently used if you spent that time on money making activity.
You need to work out what your time is worth per hour and if thats more then what you would spend on bookkeeping than you should outsource. As a business owner we have to wear many hats, but many of these tasks can be outsourced to companies for whom its their bread and butter. The other issue for business owners is to concentrate on the skills they do best, their passion, what they actually went in business for in the first place! - you'll be more efficient and happier. Why spend time on something that you probably hate doing, and it takes you longer because of it!
Look at your business. Are there areas you could outsource, that would free up your time to spend working on your business ?, or god forbid even on yourself!

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