Business Functions You Can Do Yourself (and a few you shouldn’t!)

Most businesses start out as an idea or dream by one person or a small group of people. Many of them also start out with very little cash. In an effort to save money, or not spend money since they don’t have any, many organizations will attempt to perform all business functions themselves rather than hiring someone to do it for them. 

That could work. 

It could also be disastrous.

I want to give you my suggestions for business functions you can do on your own and those that are best left to the professionals. 

On Your Own

Invoice your customers - Creating invoices, sending them to customers, and collecting payments are all functions very well suited to the small business owner. After all, this is the whole reason they went into business in the first place. They know what products or services they are selling and how best to bill for them. 

Pay your expenses - Since the business bank account or credit card will be set up in the business’s or owner’s name, it makes the most sense for them to purchase all supplies and pay all the bills. Not only is their name on the card, but they know what supplies and services they need to develop their product or offer their service. 

Early bookkeeping - In the early years of forming a business, many of the transactions are the same every month. Certainly, new ones crop up, but a lot in the beginning are very repetitive. So many business owners do OK at the start with managing their own bookkeeping.

Outsource

Branding - Designing a logo, picking the colors, creating a tagline, and deciding on your business’s message are all fun things that many owners look forward to. However, there is more to it than meets the eye. When I first met with my branding professional, I honestly knew nothing about what she did. Once we started working, we went through about five or six iterations of a logo before we settled on one. Then, when the work was complete, she sent me a folder that contained five subsequent folders that each contained anywhere from two to five files with various properties: social graphics, marks, brand guidelines, three different logo files, etc. There is no way I could have come up with that on my own.

So, while you could work with your best friend’s cousin who “knows Photoshop” or the quick, one-off online design service advertised on social media, your time and money is better spent paying someone who knows what they are doing and will do it right the first time. 

Payroll - As your business grows, you will need to think about hiring employees rather than paying everyone as an independent contractor. There are specific rules for W-2 payroll as well as rules for how you pay and treat your employees. No one is born knowing this! The rules are very tedious and state-specific. Payroll is the one function that I absolutely do not recommend business owners tackle themselves. The chance for errors is exceedingly high and IRS penalties are assessed if you do it wrong. Pay a professional to do your payroll. You’ll be glad you did. 

Accounting - I am admittedly biased on this one. Doing the accounting for a small business is literally what my entire business is about. However, this is what I have noticed. While many business owners can handle their bookkeeping in the beginning, the problem comes once they grow. Starting a company from scratch requires some accounting entries and knowledge that most business owners don’t have. So some accounts are wrong from the get-go. Then, as the business grows, the owner is pulled further and further into creating their product or providing their service and their time spent on bookkeeping dwindles until it’s almost nonexistent. I get most of my clients once the bookkeeping has gotten too difficult or too time-consuming to do on their own.  

If you are starting a business, come talk to me! I offer a one-time Quickbooks setup service where we get your books started, and I show you how to categorize your usual transactions. I can also refer you to people to help you with all items related to starting your business such as branding, marketing, legal, and tax issues.