The Terrors of Doing Your Own Books
“I’ll just do my own books! I don’t need an accountant.”
You might have had this thought before.
“Why waste the money?!”
You probably asked yourself.
This post is a case study of a couple of our clients who had this thought before they met us. Personal information has been replaced for privacy purposes.
One of our clients who owns a beauty franchise was maintaining his own books before we crossed paths. The client was doing his own books for TWO YEARS. Yes, two years maintaining his own books with no professional accounting knowledge.
The severity of the condition of his books was so far gone that it cost him $13,500 per year, or $27,000 in total to clean up his books. Had he had professional accounting from day one, he never would have incurred this cleanup cost.
Another client of ours, a restaurant franchise, believed that she could manage her own books after we told her the benefits of having an accountant. “It’s a bit expensive at this time”, she said. Six months later, she was unable to figure out her accounting. She called us needing immediate help to clean up the first six months of her books. $10,000 later, she deeply regretting not using our services from the beginning.
Bookkeeping is something that needs to be maintained and correct from day one of your franchise. Although it is seemingly an easy place to be cheap and save money, it is one of the worst business decisions that you can make. Whether you want to get a loan or purchase a home, your business’s accounting is critical to be approved for anything of the sort.
Accurate books will open up doors as you look to expand your franchise. Also, with accurate books from day one, you can avoid those costly cleanup fees.
What about time? Do you know our average client who does their books on their own spends up to 40 hours per month working on their accounting?
40 hours a month could mean 40 hours building your franchise, making new relationships and supercharging your sales. Leave your accounting to a professional to you can rest easy and focus on growing your business.
“But I just don’t want to waste any money!” Rephrase this statement, because it’s inaccurate. What you really mean is “But I just don’t want to grow.” Shocking isn’t it? The truth is, if you don’t spent money on your business, you will never grow your business. Your stagnating your own growth and missing out on a million to save a thousand.
You can take your franchise to the next level by investing in the tools and relationships that will help you grow your business quickly and effectively.
Schedule a call today to see how My Franchise CPAs can take your franchise to the next level.
John Mollica, CPA, CISA | Partner
My Franchise CPAs