There are things we have to do in our personal lives to stay healthy and fit. Unfortunately, these things aren’t necessarily our favorite activities….eating your vegetables, exercising, skipping dessert. These acts aren’t always easy or enjoyable, but the outcome of a longer, happier and healthier life is worth it. The parallel in an entrepreneur’s business is an activity that’s often more unlikeable than brussel sprouts and treadmills…. quality accounting and bookkeeping. And just like eating well and exercising often, studies show your small business survival rate is directly impacted by how accurately and frequently you manage your books. Are you in your books daily… or only a couple of times a year? If you are not maintaining them regularly, the odds are roughly a coin flip as to whether you’ll be around in 12 months. The same odds hold if you were to rate yourself as “average” on the quality of your accounting function. But despite the importance of keeping your financials current, bookkeeping continues to be ranked as the worst part of owning a business by entrepreneurs. But here’s the good news. While you can’t personally outsource good eating habits, or have someone do your workouts for you, accounting and bookkeeping are activities that can, and often should, be outsourced. Over 70% of small businesses are outsourcing at least some part of their accounting function. Handing off bookkeeping to a dedicated professional is a great first start in getting valuable time back, but an even better way to outsource is to use a team. The vast majority of bookkeeping professionals work independently, so while they may have good bookkeeping skills, they’re also limited in their ability to scale, don’t have contingency plans for vacation or illness, have no peer review process, and lack appropriate insurance coverages. So the best way to make sure you give your business the best odds of surviving, is by getting help from a team to make sure that your accounting records are both accurate and up to date.
Check out the infographic below to see your chances scaling faster.