We recently took a look at the results of the National Small Business Association’s 2017 member survey and we were astonished to learn how much time small business owners spend on their accounting and taxes each year.
For example, did you know that more than a quarter of small business owners spend over 100 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.
Take a look at how much time entrepreneurs report spending on accounting and taxes:
Do you relate to these statistics?
The good news: You’re not alone. The even better news: Outsourced accounting can give you weeks of your life back each year.
Read more about different options for outsourcing your business's accounting in The Entrepreneur's Guide to Accounting and Tax Options.
When is the right time to outsource your accounting?
If you’re wondering when your small business should start outsourcing its accounting, the answer isn’t always straightforward. But if you’re spending 100+ 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 accounting and taxes aren’t just time-intensive, they’re also inherently risky. Businesses and their owners find themselves in hot water all too often for making small accounting mistakes that turn into major matters of contention. After all, there are entire private and government agencies dedicated to investigating financial affairs. Even entrepreneurs who majored in business or finance can’t possibly run a growing business and manage their books the way a trained accountant would—it’s impossible.