The Hidden Costs of Training Your Office Manager to Do Accounting

Introduction: Trying to save money by training an office manager to handle bookkeeping might seem like a smart idea, but the reality often proves otherwise. Without proper expertise, this approach can lead to costly mistakes, inefficiencies, and lost productivity.

Today, Jon Markee, your Builder CPA, shares the story of Bob the Bad Builder and Sammie the Star to highlight why hiring a professional accountant is a smarter choice for home builders.

Sammie the Star’s Strategic Choice

Sammie the Star recognized the importance of expertise when it came to managing the finances of her growing home-building business. Instead of trying to do everything herself, she hired a professional accountant familiar with:

• Construction-specific accounting challenges.

• QuickBooks management.

• Job profitability and cash flow analysis.

This decision allowed Sammie to focus on running her business while trusting her accountant to handle financial tasks accurately. Her books were always in order, and she avoided the stress of trying to manage something outside her expertise.

Bob the Bad Builder’s Costly Mistake

Bob, on the other hand, took a different route. To save money, he decided to train his office manager—a person with no prior accounting experience—to handle the company’s finances.

Bob underestimated the challenges involved in this decision:

• Training Time: His office manager had to spend time learning accounting tasks, pulling her away from her regular duties.

• Frequent Errors: Mistakes in bookkeeping, such as misclassifications and missed deadlines, required costly fixes by Bob’s tax accountant.

• Employee Stress: The office manager felt overwhelmed and out of her depth, leading to inefficiencies across the business.

• Hidden Costs: Bob ended up spending more on cleanup costs, lost productivity, and frustration than he would have by hiring a professional accountant from the start.

Key Lessons from Bob and Sammie

1. Expertise Saves Time and Money: Sammie’s decision to invest in an experienced accountant saved her the hassle and cost of fixing errors.

2. Avoid Employee Overload: Asking an unqualified employee to take on financial responsibilities can lead to burnout and decreased productivity.

3. Long-Term Gains vs. Short-Term Savings: Bob’s attempt to save money resulted in higher costs in the long run, including unrealized expenses and inefficiencies.

4. Professional Guidance: Sammie’s accountant provided reliable financial data, empowering her to make informed decisions for her business.

Final Thoughts

Before assigning financial tasks to someone unqualified, ask yourself:

• Are they ready for this responsibility?

• Is this the best use of their time and skills?

Sammie the Star’s success story shows that hiring the right help from the beginning is an investment in your business’s growth and stability. Don’t let the story of Bob the Bad Builder become your reality.

Pro Tip: Accounting is a specialized skill. Trust a professional accountant to handle your finances, so you can focus on what you do best—building homes.

For more insights, watch our latest video, where Jon Markee discusses the importance of professional accounting for home builders.