Consultants…This is for you!!
It is a common misconception of consultants and contractors to think that they can do everything when it comes to their business. Your biggest mistake as a consultant is trying to juggle too many things at the same time.
Even though you may be bootstrapping to get the business off the ground, you cannot carry all the responsibility without support from others.
You may believe that it would be easier to handle all the invoicing and managing of the business finances yourself, but you also need to ask yourself: Am I qualified to do this properly? Do I have the time to do this work? How much time am I wasting doing these tasks over building my business?
In the same breath, you may tell me that you have the best accounting software that is able to generate reports and statements, and allows you to send through invoices, etc. But, if you don’t understand the basics of accounting, the information you gather from these reports isn’t going to be much help when it comes to making financial decisions about your company’s future.
It’s often like trying to read a watch when you don’t know how to tell time.
Instead of trying to navigate the numbers and making mistakes (some more detrimental than others) along the way, it’s in your business’s best interests to outsource to an accountant or bookkeeper.
The accountant or bookkeeper’s role will vary depending on the size of your business, but generally, they will:
- categorise expenses and transactions
- match the money you receive to your invoices
- check supplier invoices and verify credit card statements
- handle payroll and monthly tax payments
- reconcile bank accounts
- set up a budget
- monthly reporting
- act as the ‘canary in the coal mine’, bringing to your attention things that you may have overlooked, or things that may need higher levels of advice
In short, outsourcing to an accountant or bookkeeper will change your life; it will alleviate stress, give you time to get to the things you need to get to, and prevent poor decision making.
Should you require accounting or bookkeeping assistance, email us on firstname.lastname@example.org, and let us know your specific needs. Alternatively, have a look at our site, www.diga.co.za.