Why did you start your business? I bet it wasn’t to do paperwork, worry about taxes, and dredge through your accounting. You don’t have time for that. But the fact is, these peripheral activities are necessary to stay in good graces with the tax and government authorities. Whatever you may think of those institutions, they are unavoidable and here to stay. And if they are ignored, you could be shut down. Then you won’t be able to do what you want to – run your business.
A recent study found that small to medium business owners spent between 10-20 hours per week on administrative tasks like taxes, accounting, and other compliance work. That’s 500 hours per year! What would you do with that time? Would your business be more successful? More to the point, how much is that time worth to you and your business? You now have a business case for outsourcing!
Since these activities are not part of your strategy, why don’t you put someone else in charge of these necessary things? Someone who even likes doing these tasks! Unbelievable, I know, but there are people out there who want to help you deal with these things so you can make your business more successful. That is their business!
Taxes are a particularly good place to start in outsourcing. You are likely missing tax-saving measures that could defray the hard cost of farming out this laborious duty. After outsourcing taxes, the logical next step is accounting. Despite advances in technology, quite a bit of accounting is based on judgement and consistency in arranging your financial transactions. This consistency allows you to accurately see trends in your business and make critical decisions with confidence.
In closing, by outsourcing the work that you need to shed to someone who likes to do it can be a fast track to improving your business.
Please read the next article in this series on my website where we talk about what to do with all this free time you now have!