Small business owners spend an average of 10 hours a week to process the bookkeeping or about 520 hours each year (see “Small Business Taxes 2013,” Weltman, Barbara). This is a considerable amount of time when you take into account how much money you are not earning.
Let’s give you an example. Suppose you provide services at the client’s location and charge by the hour. If you work 8 hours a day but 2 of those are spent doing paperwork, the dollars that you are not earning while doing paperwork may cost you more than if you paid someone to do that for you. This is called the “cost of opportunity.”
What is your cost of opportunity? How much time are you spending on paperwork that you should be spending in the field, making money? Is it $100.00 a week? $300.00? More?
As an exercise, suppose you spend 5 hours on Mondays processing the previous week’s paperwork (is this why so many people hate Mondays?) and you charge $70 per hour for your services. You just lost the chance to make $350! And that is only for one week…
This is just one example to show you it pays to hire a bookkeeper while you take care of business.