I never realized how many administrative tasks were involved with running a business. When I started my consulting business, I wanted to do everything by myself. Many of these tasks had a learning curve, and they took valuable time and energy away from my ability to serve my existing customer base and cultivate new clients. I had no reporting function and would have to look at many sources of data to determine where I was financially. Eventually, I had to reassess this “do everything by myself” strategy so I could redirect my focus to growing my business.
I began benchmarking the time it took me to do each task and realized that it would be difficult to hire one person who had the experience to do everything I needed to run my business. When I looked at the cost of hiring staff to perform all of the administrative functions (account receivables and payables, payroll, bookkeeping, and tax recording), the cost became prohibitive. I also realized that I would be the one to train everyone, and there would be a need for supervision, which would fall back on me. At this critical juncture, I realized that hiring in-house staff would only take me farther away from where I needed to be, which was customer-focused.
So, I began looking at outsourcing options for my bookkeeping and accounting functions. The bookkeeping services varied in what was offered, but I realized that the really good bookkeeping and accounting firms offered customizable services and flexible rates depending on the volume of transactions, how often I wanted updates, and what level of specialized reporting my business would require. After I looked at all my options, I realized that outsourcing was the only option that made sense for my business.
By outsourcing the bookkeeping and accounting functions, I made the time to focus on growing my business. The bookkeeping and accounting service that I chose was very knowledgeable about my consulting business and worked with me to establish customized financial reports that I receive monthly and quarterly. These customized reports show me sales, overhead expenses, cash flow, and where the majority of my expenses are during each monthly and quarterly period. I also received a monthly report on budget versus actual transactions. These customized reports allow me to make adjustments when necessary to stay on budget.
Because I was outsourcing all of these administrative and bookkeeping functions, I kept my overhead expenses low, I had minimal employee expenses; no vacation time to pay out, no payroll taxes, no benefits to pay, and none of my time went to vetting and hiring staff, or training new hires.
Even though my business was only a couple of years old, my bookkeeping team helped me impress potential investors and creditors by demonstrating I had established procedures, systems, controls, and customized reporting in one place.
Looking back, I am so glad I decided to outsource my bookkeeping and administrative functions. Not only did I keep my overhead costs down, but my bookkeeping service helped me assess my needs and set future goals. They had the foresight to help me design a customized reporting system that would grow as my business grew. This allowed my business to operate more profitably than I had thought possible!
EVA Business Solutions love to help our clients create profitable businesses and keep them running smoothly! We are a virtual bookkeeping and accounting service ready to assist you with all of your bookkeeping and accounting needs. Call us today at (615) 461-7157.