They waste a lot of time, that’s what.
This may sound stupidly obvious. But apparently it’s not. Because I recently took a look at the results of the National Small Business Association’s 2014 member survey and I was astonished to learn how much time small businesses that don’t outsource spend on accounting each year.
For example, did you know that a quarter of small business owners spend over 120 hours per year on their federal taxes alone? Being entrepreneurs ourselves, we know that most of you work pretty long hours. So, assuming a 60 hour work week, that’s like taking two weeks off to sit in a cave while your company fends for itself. Every year.
That’s just federal taxes—forget state taxes, invoicing, receipt management, and all the other nitpicky bits of the day-to-day accounting you need to manage your business.
The right time to outsource accounting
My colleague Michael recently wrote about the “right” time for small businesses to outsource their accounting. The answer isn’t always this straightforward, but if you’re spending 120 hours a year on federal taxes (or even 30 hours a year), it’s safe to say that the time to outsource has come.
If it were just your time, that would be one thing. But every hour an entrepreneur spends on DIY taxes and accounting is an hour he or she isn’t spending on steering the company to success and, yep, making more moolah.
Do you relate to these statistics? The good news: You’re not alone. The even better news: Outsourced accounting can give you back weeks of your life.