In the diverse landscape of small to medium-sized businesses, it’s not uncommon to find partners in life doubling as partners in business. Many entrepreneurs choose to involve their spouses or significant others in various roles, with a common choice being handling the company’s books.
While this arrangement can work wonders for some, there are certain considerations worth pondering before jumping onboard. Let me preface this by saying: I absolutely respect every business model and decision out there. If your spouse or partner is your bookkeeper and it’s working out for you, kudos! However, if you’re contemplating such an arrangement or are facing challenges with the current one, here are some reasons why you might want to reconsider:
1. Blurring of Personal and Professional Boundaries
When your significant other is in charge of the finances, it’s all too easy for personal emotions and dynamics to seep into business decisions. A disagreement at home might carry over to the office or vice versa, which could cloud judgment and decision-making abilities.
2. Potential Skill Mismatch
Bookkeeping is a specialized skill. Simply because someone is close to you doesn’t automatically make them the best fit for the role. It’s crucial to ensure that the person handling your books is qualified and adept at the job, irrespective of their relationship with you.
3. Lack of External Perspective
Having an external bookkeeper can bring a fresh perspective to your finances. They might spot opportunities or red flags that someone too closely involved in the business and personal dynamics might overlook.
4. Privacy and Autonomy
Some business owners value their financial privacy and prefer not to have their spouse involved in every financial detail. This ensures both partners maintain a level of autonomy and independence in their respective domains.
5. Risk Concentration
If both the strategic and financial aspects of the business are controlled within the family, it centralizes the risk. Diversifying roles and responsibilities can be a smart way to distribute risk and bring varied expertise to the table.
To wrap it up, while there are undeniable conveniences in having a spouse or significant other manage the books, it’s essential to weigh the pros and cons specific to your situation. Business decisions, especially ones as crucial as who handles your finances, should be made with a clear, objective lens. Remember, the goal is to ensure the business thrives while keeping personal relationships intact and flourishing.
At the end of the day, your primary concern should be the integrity and reliability of your financial records. Accurate and up-to-date books form the bedrock of a successful business, guiding crucial decisions and offering insights into the company’s health.
Regardless of who holds the position, be it a family member or an external professional, the utmost importance lies in their qualifications and proficiency. The ability to trust your books unconditionally is invaluable.
As a business owner, ensuring that the person responsible for them possesses the right skill set and expertise is not just a smart move—it’s imperative.
(PS. Not to be sexist, but the typical scenario I have seen when we talk about spouses working together in small and medium-sized businesses is that the female spouse has taken the position of the bookkeeper – hence that’s the perspective from which the article is written. The viewpoints, however, are equally valid if the roles were reversed).
