Just because you are starting a business on a budget doesn’t mean you have to do EVERY job!
You are an excited entrepreneur on a small budget that wants to dive in and get your startup going. It is very tempting to do the “easy” jobs because you think it can save you money. However, unless you are an expert already, it will take time for you to learn the task and it will then take time to accomplish this task on a weekly or monthly basis. Let’s assume that you are thinking of managing your bookkeeping.
Determine your hourly wage (either current job or what you think your time is worth). For example, say that you usually make around $50,000/year. That is about $24/hour (assuming 2080 hours a work year). You call around and research the going rate for a bookkeeper. Most likely they charge somewhere around $60 – $100/month. That means to “save” money, you will have to accomplish this task in less than 2-4 hours a month.
After you learn how to use Quickbooks, Quicken or a similar program (don’t forget to add the cost of the program you are using when you calculate the cost), this task may take less than 2-4 hours. Personally, I have found that when I do my own books, it is easy to get lost in the details and the task takes longer than 4 hours a month. This is especially true if you don’t like the task at hand. The point is, do the math first!