Common Misconceptions of DIY Bookkeeping

There tends to be a misconception about bookkeeping that our Concord-based bookkeeping firm hears all the time, that it’s easy & that the software does most of the work. So when cutting costs, many times business owners will cut experienced bookkeeping support first – opting to tackle the books on their own. While in some cases, this works, for many it quickly snowballs into a much larger issue that will affect the rest of your operation.

We see it often. Many clients call after attempting to DIY it or after working with an inexperienced bookkeeper. The integrity of your financial reporting is fundamental to all aspects of running your business. Ensuring their accuracy is paramount, so I wanted to take some time to explain the why behind the need for accurate bookkeeping & why hiring an experienced outsourced QuickBooks ProAdvisor bookkeeper is a great solution.

Software is not quite as advertised.

The program doesn’t actually “do” the bookkeeping.

One of the most common misconceptions we hear is that the software does the work. While we love our accounting software, it absolutely does not “do the work”. In fact, one of my favorite jokes is how smart the program thinks it is… but it’s not. Our Quickbooks ProAdvisor bookkeepers often must correct the books to account for mishandled transactions & missing adjusting entries that the program is simply incapable of doing. Even more commonly, we find that a true reconciliation is rarely done – so transactions are missing altogether as the bank connections are great – but only when they actually work.

What happens when your books are not done timely & correctly.

You put things off.

Bookkeeping takes organization and dedication to ensure timely & accurate recording of all transactions. However, at our Concord-based bookkeeping firm, we often find that DIYers under assume the amount of time it takes to complete the monthly bookkeeping, so it piles up. Incomplete. Waiting. Tax time rolls around, & it now becomes a stressful mad dash to get the transactions in, updated & out the door to the tax preparer.

The avoidable happens.

The delay in recording transactions to your accounts means things will inevitably be missed or improperly recorded. It can be hard enough to accurately recall something that happened last week, let alone months ago. A huge backlog of work has occurred from putting it off & now you have months to sort through.

Time is spent on non-revenue producing activity.

Ironically, all the time spent on doing your own books takes time away from revenue-driving tasks. Instead of reviewing your reporting & making strategic decisions, you are coding transactions & reconciling accounts.

Financial Reporting is inaccurate & untimely.

Our Quickbooks ProAdvisor bookkeepers believe that accurate, timely financials are the backbone of decision-making. Incorrect reports can lead to bad decisions, incorrect assumptions, & overextending yourself as you thought you were in a better financial position. Think back to 2020 when operating decisions due to COVID had to be made without warning. If you hadn’t done any bookkeeping in months, you ultimately were making tough decisions on guesstimated reporting. If you have ever sought out an investor or applied for a bank loan, accurate financials are critical, as the numbers can drastically affect the results.

It's okay to outsource.

Benefits of outsourcing your bookkeeper.

Our Concord-based bookkeeping firm knows that it can be intimidating to hand over your financials to someone else. We understand that completely. But there are a lot of reasons why this is a money-wise decision:

·       Bookkeeping is all we do:  All day. Every day.

· We work for YOU, not your staff: This means our Quickbooks ProAdvisor bookkeepers are a trusted second set of eyes watching your money; our loyalty is to you, not to your staff.

·       We are cost effective: We don’t need benefits or desk space & we come with our own computer.

·       We stay on top of your books:  No more mad dash to tax season. The books are closed every month.

·       We save you money: We help find ways to streamline expenses, freeing up cash you may not even know you had.

·       You can work on your business, not in it: When we do the books, you can focus on growing & running your business, while we provide the accurate reports to help you do it.