The Basics of Business: One Mistake You Should Never Make

The basics of business - why should i get an accountant and a bookkeeper?

We’re starting off with a 3 part series to offer business owners a fresh perspective on the fundamental things like Accountants, Bookkeeping and Payroll.

Think of this post as an introduction, a short prelude if you will to set us on good foundations and stop us falling at the first hurdle.

“The Basics of Business Is To Make Money by Providing a Service”

Can we safely agree that the above statement is true? Every business began because someone, somewhere, felt they had an exceptional quality that they could provide to others. Modern day culture demands that we look towards innovative ideas to progress, but perhaps it’s more important to remember what you’re good at instead? 

The reason why you started a business is because you have a specific skill-set that you think is worth something to others – and where there’s a skill-set required, there’s a service. So it makes sense that the more you hone, practice and deliver that skill-set: the more people will recommend you and the greater income you’ll be making.

The First Hurdle

Of course, when you begin to make money though, a curveball is thrown into the mix – keeping track of income, expenses, submitting tax returns, profit margins. In short; Finances.

Let’s be honest, your skill-set probably isn’t managing your accounts, bookkeeping or even payroll – but we convince ourselves it is, because it’ll save us money, right?

Wrong – where there’s a skill-set required, there’s a service.

“Managing your finances… It’s like plastering walls with a paintbrush, you’ve not got the right tools”

Choosing to do these tasks yourself isn’t the same as plastering your bathroom wall and admiring your handiwork. Managing your finances is much different – It requires a lot of time and, on top of that, knowledge about tax.

The decision to continue doing these tasks yourself is probably what’s holding your business back. It’s like plastering walls with a paintbrush, you’ve not got the right tools.

I promise you, you’re much better off spending your time doing what you should be – delivering your skill-set. Why? Because it’s what you’re good at, it’s why you started the business in the first place!

An Accountant’s Skill-set

Accountants could save you money on taxes and time.

An accountant’s job isn’t to take away your hard earned money. Remember the model from earlier; it’s to use their skill-set to provide a service.

What’s the service? They manage your finances and allow you to deliver your own service much more often, which in turn, increases your income. The money they could save you on taxes would, of course, increase your income too.

Sometimes working harder doesn’t cut it, but working smarter does and getting an accountant is a massive step in the right direction.

Application: Overcoming DIY and The Fear of Expenditure

One of our biggest fears is our bank statements, the amount of money going out each and every month and we’re desperate to cut those costs wherever possible. Over the course of a year, will you spend more money paying for an accountant to manage your finances than if you did them for free yourself? Of course!

But that’s not the situation here; the work you’re doing isn’t for free – your eyes are fixed on your fears. Granted, you may not see money exiting your account on a monthly basis, but you also won’t see the money that should, and could, be going into your account if you weren’t spending so many hours trying to plaster walls with a paintbrush.

The Floor’s Yours:

What’s your current situation?

What’s been your experience with accountants?

It’d be great if you leave a comment letting us know your thoughts, or share this blog around with other business owners that you know. If you have any questions, feel free to send us an Email.

We’ll update our Facebook and Twitter when the next blog goes up, so be sure to follow us on those for more stuff like this!

In the next blog, Part 1 of 3, we’ll be focusing specifically on Accountants, who to pick, should I switch and what’s available to me – as well as debunking those Myths you’ve probably heard.