"Oh my god. This is a freaking nightmare."
This is the conversation that I was having with my COO over the past few months as we worked to clean up our books.
For two years, I had hired a cheap bookkeeper. His rates were unbeatably low, so I went with him to save cash.
In reality, I probably saved $150 per month hiring this guy over the standard bookkeeping rates in the market. So over two years, about $3,300 in total.
For the past 12 months, I knew I needed to fire this guy. But I kept putting it off and avoiding the problem.
And then BOOM! Explosion.
We finally ended the engagement, and when we looked at what we actually had, it was horrifying.
3 months of books not even done... And two years of absolute chaos and laziness.
This resulted in thousands of dollars of consulting to help us get this fixed, along with countless hours of work on behalf of my COO to go in and fix the issues by hand because only he knew the transactions.
If my COO was charging me hourly, this would have easily cost us $5k of his time to fix. Instead, it's more than $3,300 in consulting costs and a massive opportunity cost of a distracted COO.
Don't be cheap.
You will end up paying the price in the short-term, or the long-term.
It all evens out in the end.