When should you outsource your bookkeeping or when you should do it yourself?
First of all, we need to figure out what’s the cost of a bookkeeper.
Here at Inspire CA, we do have a bookkeeping package that’s around $200.00 a month. That’s how much it costs to do your bookkeeping for that month or $40.00 an hour.
Now we need to figure out what your time is worth.
One of our clients, he’s a GP, and he could easily earn about $120.00 an hour.
Now, let’s think about it. If you spent an hour doing bookkeeping you would have said bye to that $120.00 just to save $40.
You could have earned that money instead by growing your business and seeing clients.
Instead, you were sitting in a back room doing bookkeeping and you wasted $120.00.
Whereas, you could have outsourced that and cost you only $40.00.
That’s the logic there.
Is your time worth more than a bookkeeper’s time?
If your time is worth more that the cost of doing your bookkeeping, outsource it.
Not only is it cheaper & more affordable (compared to the opportunity cost of your time), you buy back hours of your own time each month.
What could you do with 5 hours more each month?
Personally, I like to do a lot of cooking and that’s a lot of fried rice that you can cook in 5 hours.
If you guys are watching this right now, comment below and tell me, what would you do with the free 5 hours you just received because you hired a bookkeeper to do your bookkeeping.
Got a burning question about knowing if you should be doing your own Bookkeeping?
Book in, to TEST DRIVE AN ACCOUNTANT – a 15 min rapid fire Q & A session with an Inspirational Accountant.