With tools like Xero and MYOB, handling your own bookkeeping is easier than ever—but is it always the best approach?
The Appeal of DIY Bookkeeping
Saving Money: Not only does "do it yourself" save money, it puts you intimately in touch with your numbers. You know who to invoice, who has or hasn't paid, and who you need to pay.
Monitor your own business: If you're really savvy you can run reports and see how all those numbers line up each month, look for discrepancies and make coding adjustments to ensure the picture you're seeing is accurate.
However, many business owners find that, while they can enter transactions, the bigger picture remains unclear. The data doesn’t always translate into valuable insights.
Your accountant might take care of GST returns and handle the final year-end reporting and taxes, but that might be the only time you connect, leaving you in the dark for most of the year.
The Hidden Costs of DIY Bookkeeping
So, what are the drawbacks of doing it yourself?
Time: DIY bookkeeping takes time—time that could be better spent growing your business. What is your time worth? Could you be using it more profitably elsewhere?
Accuracy: Bookkeeping isn’t just data entry. Misclassifying expenses or income can lead to inaccurate reports, which means poor business decisions. You might also end up paying more in tax or accounting fees, as your accountant may need extra time to clean up mistakes.
Compliance: If your records aren’t properly stored or up-to-date, you could find yourself in trouble if the IRD comes knocking. A well-organised, accurate system helps you avoid costly errors and audits. See my blog post about record storage.
Profitability: Are you sure the services you offer are profitable? Without real-time, accurate financials, it’s hard to know if you’re on track—or heading for a cash flow crisis.
Why Choose Office Outworkz?
Here’s how we make a difference:
Expertise: We bring detailed knowledge and targeted expertise to your business. Our experience ensures your transactions are recorded correctly, and we help you comply with regulations every step of the way.
Proactive Financial Management: Beyond bookkeeping, we produce financial reports, flag potential issues, and keep everything running smoothly. From GST returns to creditor management, we take care of the details, so you don’t have to.
Seamless Collaboration: We work alongside your accountant or we can offer a complete end-to-end service if you prefer everything in one place. From cash flow projections to preparing end-of-year accounts, we partner with you to help your business succeed.
Empowerment Through Understanding: We don’t just manage your accounts; we empower you to understand them. When you know your numbers, you can confidently make decisions that move your business forward.
DIY Support: If you prefer a hands-on approach, we can assist with one-off reviews, cleanups, or Xero training to ensure your DIY bookkeeping is as efficient and accurate as possible.
At Office Outworkz, we’re passionate about helping small businesses thrive. Whether you need ongoing support or just a little guidance, we’re here to help.
Reach out for an obligation-free chat to learn more about how we can support your business on the path to success.
