Do you feel like you have to be an expert at all backend aspects of your business? The back end (or operations) of business includes anything that is hidden from your clientele. Essentially, whatever is happening ‘behind-the-scenes’ is your back end. This can include accounting, finance, HR, inventory, document handling, or production, just to name a few.
The pressure for a business owner to handle all of these aspects can be overwhelming. How do you know which pieces should consume your time and which should be handled by specialists?
Some questions to ask yourself:
· Do you feel mounting frustration with a particular aspect of your business because it’s diverting your focus from what you do best?
· Is your time more valuable when focused on a certain key area of your business that drives growth, or does it make more sense for you to focus more on routine operational aspects?
· Are you generally feeling overwhelmed with all of the moving pieces?
· Do you feel that mis-handling certain aspects of the back end may result in a crucial error that could lead to problems?
Please be reassured that you are neither supposed to be an expert at every aspect of running a successful business nor is it realistic to continue handling every aspect of business while successfully scaling. Some business owners feel that handling all aspects themselves will save money. The tradeoff often manifests in compromising your time and focus, which could stifle long-term financial growth.
For example, tax management is an intricate and crucial aspect of business ownership. You could be losing out on deductions that can affect your bottom line. You could unintentionally overlook an area of reporting that could lead to serious complications. The list goes on and on.
Here are some simple signs to consider when determining whether it’s time to outsource:
1) You are struggling with or missing critical deadlines.
2) You are questioning the accuracy of how you are handling certain operational aspects.
3) You are noticing that your time and focus are increasingly shifting away from the primary reason why you started your business.
Filing taxes is the most obvious set of deadlines to track and execute, so we’ll use this example. When preparing to file taxes for your business, it is imperative to ensure you have all of the forms and records in order.
Aside from the major tax deadlines spanning from January to April to consider, business owners need to stay on top of closing their books in anticipation of these deadlines. Ideally, this should be done monthly to ensure EOY closing is easier to manage. Closing your books includes resolving open liabilities, double-checking balance sheets, and making other necessary adjustments. Since EOY book-closing happens during the holiday season when business (and personal lives) are typically the busiest, an extra layer of stress is inherent. Add to this any quarterly deadlines and additional state and or city-level deadlines. Accuracy in record-keeping and reporting is critical. Missed deadlines result in penalties, and underpaying leads to penalties and interest.
We know- it’s a LOT. While your goal is undoubtedly growing your business, with success comes additional responsibilities. Frustrations can mount when operational matters pull you away from what you are best at. As the business founder, you are the expert in your product or service. Opportunity costs occur when your time is compromised due to matters that can be outsourced easily. Yes, you can learn what it takes to execute certain back-end aspects of your business. However, is that really the best use of your time? Hiring an expert will help you get back to doing what you do best. You’ll avoid mistakes, save time, and increase your overall peace of mind. Blueprint Financial is here to partner with you. Take a look at what we are all about and the services we offer. Let’s set up a free consultation to see how we can help you!
