In a recession most people are finding more ways to cut costs. Instead of hiring a landscaper to cut your grass, you pull the lawn mower out of the shed and say "I will do it myself". The typical landscaper can charge $40 per cut, well at least mines does. Wow, I will save $80 per month and $960 per year.
Next, I decided that instead of taking my pet to the groomers once a month I said, "I will do it myself". How hard can it be to wash my dog? First, I'll shave him, wash him, dry him, and I'll even brush his teeth. Heck, I will even paint his nails. Great, that will save me $50 per month, and $600 per year.
Hey, I am on a roll! What else can I do myself to save money? Oh yeah, I can even wash my own car. Forget paying for a $3.00 car wash and a $1.25 for the vacuum at the gas station. Not only can I wash my own car, I can detail it. I will save $8.50 per month and $102 per year.
Now here comes the real test. I am pretty smart or at least I think I am. So how hard can it be; on Monday I don't feel so well, on Friday while cutting the grass I pull a muscle, on Saturday I spent the entire day chasing my dog around the yard to groom him, which neither he nor my husband appreciated me using the electric shaver on the dogs private parts.
However, the only damage incurred was major fatigue. I can live with that because look how much money I saved. On Sunday I spent the rest of the day cleaning and detailing my car. The family chipped in, but after 15 minutes the kids tried to kill each other and after 45 minutes my husband went into the house to watch the game. Wow, who cares, right? Because, “I am doing it myself.” Not only did I save, I have the body pain, fatigue and cold symptoms to prove it.
As I am sitting at my computer asleep with my eyes open at work, the light bulb goes off in my head, I can fix this. Instead of going to the doctor I can go online and self diagnose my symptoms. What the heck!!! The website says I have H1N1 swine flu. I leave work to go straight to the doctor’s office; the bill is $160 and $50 for the prescription. Thank goodness for that great prescription plan. I was correctly diagnosed with a 24 hour stomach virus.
Oh yeah, I lost $400 for a day’s worth of work for going home early. Now when I get home I am still public enemy number one. My daughter is still mad from Friday; I picked her up late due to cutting the grass. My son is upset I missed his game on Saturday, because I was cleaning with the dog. He scored his first touchdown. As far as my husband and the dog, both took a vow of silence because of the clippers situation. He said the dog felt violated and tonight is Monday night football. Don't even try it.
I saved $94.25 but I loss $610, and everyone is giving me the silent treatment. I say this to say we sometimes fail to evaluate when doing it yourself how much we can lose. At the time it sounds great, but I want to remind you savings, budgeting and cash management should be proactive not reactive.
Each year my firm sees the same type of clients. The couple who did their own taxes, but because they did not understand tax law they claimed credits they did not qualify for. Now they are receiving less than welcoming letters from the IRS. Or even the small business owner who vows to do his own bookkeeping, but gives up after March. He is either too tired, too busy, or he couldn't understand the QuickBooks software. Last, my favorite encounter is the client who wants to cut costs. He switches his long distance, prints proposals on the backside of used paper. Then he lays off his loyal employee of ten years to outsource her job to India.
In the end, I beg you to ponder how much did they all really save? The same do it yourself couple now has to pay back taxes, penalties to the IRS, and our firm fees. As far as the small business owner he did not know how extensive bookkeeping can be, he ended up paying for one years of bookkeeping’s in a lump sum. The first three months were wrong and we had to start from scratch. Last but not least, the client that laid off his loyal worker. He soon realized that not only did she do her job, but she kept the clients happy, and went above and beyond the call of duty. She was trained in every facet of his business; even in areas he was not.
Like anything in life, everything you do needs to be thought out and done in moderation. Also, learn to respect the specialist he/she is a professional, there is a reason why they have the credentials. Furthermore, don’t be afraid of looking at future cost. Remember: Today’s savings can be tomorrow’s liability.
Written By:
Tiffany Williams, CPB, ATP,Certified QuickBooks ProAdvisor®
T.A. Williams & Associates, Inc
Tel: 678-825-4TAW / Fax: 678-298-6293
Email: info@4taw.com / Website: www.4taw.com
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