You have a business. You started it from the ground up. You use your money, time, effort, and energy to get started. And now, you are starting to see some success. The question will soon arise of how much time you should spend doing your own business accounting.
As more money comes and goes, trying to figure out how to do your own income and expense reports will take up more and more of your time. Is it worth it past a certain point?
The answer to that is no. But, you have to decide what that tipping point is. To help you with it, you should recognize the benefits of outsourcing your finance and accounting processes.
You should know what kind of effort has to go into your finances after you create a detailed business plan. And, in theory or practice, you can move your way through the information you would receive in an MBA program. That will give you a good idea of what proportion of your time should be going to finances.
The Benefits of Outsourcing
It is hard to overstate the benefits of outsourcing finance and accounting processes. As soon as you get to a point where more of your energy is spent on your accounting then on promoting your business, then you are in the wrong. You have to spend your money in a way that creates the least opportunity cost for yourself.
A big part of this is going to be moving your accounting and financing administration to someone else. Hiring a consultant or contractor is a good way to do this.
Creating a Detailed Business Plan
Before you started your business, you created a detailed business plan. As you move your way through that plan horizontally in time, you’ll find that at some point, the economic value of you working with your accounting numbers no longer fits within the framework that you have set up for yourself.
If you don’t choose to do raw outsourcing of financial work at that point, then you should slowly and steadily start figuring out someone other than you internally to do this before your business plan derails itself.
Moving Through an MBA Program
Have you considered getting an MBA? In a few years, you can get all sorts of vital information about the financial aspects of a business. During that period, you can decide for yourself how much time the owner of a company should spend on financial matters.
Early on in the history of your developing brand, you will have to do all the work. However, as you’ll find out from the information in a business administration program, it makes a whole lot more sense to move your talents into a different area as your company expands.