When “Free” Simply Costs Your Business Too Much
Over the years in the small business world, especially when I went out on my own back in 2005, I’ve learned that the words ‘œdiscount,’ ‘œfree,’ ‘œcheap’ simply costs you more than what you originally paid for it. I myself have developed a niche market when working with small business owners who have bad financial problems because someone who has been offering free/discounted advice/work with their QuickBooks file is so screwed up I often have to start from the beginning.
When you pay someone $8.00-$10.00 an hour to handle your business, you work with someone who you’ve never bothered doing a background check or any type of testing on their knowledge. Worse you attempt to do it yourself to save money, and it usually means that when it’s time to file those pesky tax forms, you’re in for a world of hurt because the information is far from being correct.
A recent issue I came across was a receptionist/bookkeeper who had been handling several companies for 3 individuals in the same office. When one of the individuals recently passed away, it was discovered by the other 2 individuals that there were several thousands of dollars missing in the mid to high six figure range. The person handling the finances knew it was going on but felt it wasn’t necessary to let everyone know for unknown reasons.
Another issue I encountered myself, was that a person who I had entrusted to handle my web site design offered to do it for free, and just starting out I said yes since they wanted to get the experience and some exposure in order to develop their own business. Little did I know that they couldn’t handle constructive criticism and they felt that they knew more about my audience wanted than I did. I couldn’t edit my own content and it cost me a hefty price to find a reputable designer who brought it into a much easier format which I was able to make changes to it myself and was readily available for any questions or problems.
Speaking as someone who understands how important it is to be aware of what you’re signing off on is your responsibility and no one else’s. As tax season is in full swing, realize that the information you have provided is your responsibility and no one else’s, whether it’s your personal or your business. As was the case for Marc Anthony, who in 2007 was ordered to pay around $2.5 million in back taxes for failure to file 5 years worth of state returns. Fortunately he was not charged, but 2 of his associates pleaded guilty to tax felonies. I recommend to everyone to read, ask questions, and verify above all else before signing on the dotted line. You have to ask yourself if it’s worth a little bit of extra time to double/triple check the work versus having a much higher price to pay because you were trying to save a buck.
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Dwayne J. Briscoe, Owner
Bookkeeping-Results, LLC
Dwayne@bookkeeping-results.com
Photo credit: stock.xchng.
Paying a premium and hiring the best people for either a project or full time pays off in the long run. It’s one of those things you have to see the longterm ROI. Sure it wont always play out but I bet more often then not you will be pleasantly surprised.