Is ''Do It Yourself'' a False Economy?
Call in an expert and get it done right ...
Posted on: 09/10/2014 By: Maureen Windridge
DIY is so incredibly easy when you have the right tools, isn't it? You picture in your mind's eye all of the fantastic things that you can create and achieve and it looks so easy; provided, of course, you know what you are doing and you know how to use those tools ...
if you have a leak then you need a plumber, but to balance the books you need a bookkeeper
However, what if you don't know how to use all of your tools? Power tools are used to shape and form raw materials into a useful and manageable end result. In the wrong or untrained hands though, these tools can do a lot of damage to raw material - even render it useless. Everyone has probably seen the television programmes where houses almost fall down when DIY goes wrong and it can have horrific, long term consequences.
In business we also have power tools; these are accounting packages, spreadsheets and databases. Our raw material is our data. The power tools of business in the wrong hands can do untold damage to data and that can be as devastating to a business as having your house fall down ... yes, really!
I can tell many horror stories, here are just a couple:
One day, one of my customers received papers from an insolvency practitioner - one of their customers had gone into liquidation. The papers said that due to a bookkeeping error, dividends had been paid that the Company could not afford and as a result the Company was unable to meet statutory obligations. They went into receivership; jobs were lost and my customer took a large bad debt.
A Managing Director sent his daughter to do two hours training in the use of an accounting package and then left her to deal with Company's bookkeeping. MW Bookkeeping & Accounting became involved when the Company's accountants were having difficulty sorting out the accounts for the year three years previous to the current year! This Company had by then had over £12,000 in fines and penalties. Fortunately it is a profitable concern but wouldn't the owners have preferred to have that money in their pockets rather than the Government's?
I could go on; although I think I have painted a picture of the potential pitfalls.
I wouldn't dream of picking up a drill, a saw or a sander or any other such power tool that could change the shape or even demolish my home. I leave that to the experts who know what they are doing.
Bookkeeping and accounting are subjects in which professionals spend a long time training to become experts in their field so that they can use these power tools of business to analyse your data and provide you with a wealth of knowledge - good use of that knowledge will add value to your business.
I suspect you've also invested a great deal of time in becoming an expert in your own industry and that's what you probably focus upon in building your business, don't you?
My message is simple; entrust this crucial part of your business to a professional who understands it inside out and who is a Master (or Mistress) of the business power tools - anything else is a false economy with a high risk of damaging or even demolishing your business - so find a Bookkeeping professional and together you can pave the way to building the business success that you desire!
Do feel free to call me on 01908 692378 to discuss any aspect of your bookkeeping!
Until next time ...
I consider myself to be incredibly lucky because I am a bookkeeper. At the age of thirteen I did a three year course in three months and passed with distinction. Many years have gone by since then and I am still fascinated by the process of double entry bookkeeping. A process developed over 500 years ago by a venetian monk called Luca Pacioli.
Many people would like a machine that they could put all their paper work into at one end and it would come out the other end all sorted totalled and balanced. I'm glad it hasn't been invented because it would take all the fun out of my work!