Many entrepreneurs and small business owners try to tackle bookkeeping and accounting on their own. Tim Lowe (Branch Manager and Mortgage Advisor at Perl Mortgage) and Bob Hedlund (Owner, Hedlund Plumbing), and Scott Daneck (Equanimity Wealth Management) shared some of their experiences during a round table discussion with Marsha Zimmerman (Marketing Manager with Dart Development).
What did they learn? Doing it on your own can translate into many wasted hours and resources. “You can say it was money down the toilet,” said Tim Lowe. Whether you decide to outsource to an accounting firm, or hire in-house help, here are a few things to consider:
- Make the investment. Hedlund Plumbing has an in-house bookkeeper who works with an external CPA. Lowe reported that he relies on an outside accounting firm. Both Hedlund and Lowe agreed that trusting someone to track financial information and offer guidance on how to navigate tax requirements saves them time and money, while also allowing them to focus on their services.
- Do your research. When it comes to accounting firms and financial planners, many are required to meet specific certifications. During a Michigan Business Rap segment, Scott Daneck (Equanimity Wealth Management) talked to Zimmerman about which certifications and titles are important, as well as what to listen for when you’re screening professional services.
- Leverage industry-specific software. Many industries have software specific to their trade. Hedlund mentioned that the software used at Hedlund Plumbing helps them track all their inventory. Software tailored specifically for your industry is often more efficient than using several different systems to track necessary financial details.
- Learn from others in your field. Trade Associations can be an incredible resources for small business owners. You can network with other business owners outside of your immediate area, and often you can benefit from their experience and lessons learned.
- Communicate your goals. Financial people help set you up to achieve those goals. If you’re clear about what you need to do and where you want to go, they can help move the pieces to help get you there.
Labels: latest, Michigan Big Show, Michigan Business Rap