As business owners we are super busy and don’t have much time for things that don’t make us money. Bookkeeping, while necessary, is one of those activities. So how many hours should you be spending doing something that doesn’t make you money?
Little to none of your time should be taken doing your bookkeeping. What I mean by this is to think about outsourcing it to someone. If your business is growing, you might not find the time to do your own bookkeeping. Outsourcing your bookkeeping can give you relief in case of an audit. You will also be able to trust that your financials are in order. Tax season will also be so much easier. You’ll be able to focus your energy on activities that actually bring in the money.
Maybe you feel like you can’t afford someone yet or you would rather do it yourself. In that case, you are going to need at least an hour to two hours a week to do your bookkeeping. This will depend on how many transactions you have per month. The larger a business, the more transactions and complex the books will be. Of course if you are a start up, you might not need as much time.
It’s super important to keep up with your bookkeeping to protect your business. You will prevent yourself from tax time bookkeeping marathons. Getting a better picture of your business’s finances is also a lot easier with clean books.
Next time you sit down to do your bookkeeping, time yourself. See for yourself how much time it is taking you to do it. And remember, this is an activity that isn’t actively making you money. Reach out to a bookkeeper and see how much it costs. Imagine the profit you could be making using that time to market yourself and leaving the bookkeeping to the pros.
