Today, on Hubstaff’s Agency Advantage Podcast, I’m talking with Jason Blumer of Blumer and Associates, who shares how you can leverage your agency’s most valuable resource, your time.
Jason is a CPA who provides his clients, agency owners, with bookkeeping services, but that doesn’t begin to cover all of the ways Jason and his team can help turn creative business owners into mature business owners.
In our chat, we cover everything from why bookkeeping should be seen as an investment to when you can afford to hire an employee, and while he shares some great tactical advice, it is hard to generalize the advice across all agencies. So Jason covers how you should think about these decisions so that you can choose the paths that make the most sense for your agency.
Ultimately though, you won’t be able to focus on these decisions if you’re stuck in the day-to-day of running your business, so Jason shares his strategies for helping agency owners focus on what really matters and get the most from their limited time.
If your business is growing, but you don’t feel like your processes have matured at the same pace, then this is the episode for you.
Grab the transcript of the interview here.
Why bookkeeping is an investment
Jason argues that people need to change the way they think about bookkeeping and accounting. Most agency owners think of running the numbers as just another drag on their time or another business expense. However, Jason says these owners are getting too bogged down in details.
He urges clients who can afford it to outsource their accounting activities because a good accountant can run the numbers and produce a number of key metrics which can really tell you about the health of your business. At the end of the day, the exact amount you spent on office supplies is not going to tell you if the new marketing campaign you launched worked.
However, your profit and loss trends can tell you if something worked or failed. Yes, financial metrics lag behind the business, but they allow you to zoom out and see the forest rather than the trees.
Why the agency owner shouldn’t be doing this themselves
Jason points out that agency owners often start doing their own accounting since they don’t have the money to hire someone else to do it. But an agency owner’s greatest resource is their time, and accounting is a time suck, especially for someone whose talents don’t lie in that field.
When an agency owner hires an accountant to take care of the financial details, all of a sudden there’s a hole in their schedule, and that hole can be filled with things only the agency owner can do, like thinking of new marketing campaigns or deciding the future of the company.
Where agency owners need to focus instead
According to Jason, business owners need to get comfortable with the idea of not focusing on their raw financial statements. Again, it won’t help them. What will help them is looking at trends from month to month and quarter to quarter and year to year, seeing where the profits came in and where the losses came in.
By letting a professional focus on the raw numbers, an agency owner can then ask themselves, “What financial metric is most important to me? And what do these metrics tell me about my business?” Financial information can then become part of your business’s strategy.
You can look at your numbers and say, “I want to reach X financial goal, and here’s how I’m going to do it based on past trends.” Are you doing well, or do you need to scale something back? Are you in a good place to take a financial risk, like a new investment or a new hire? Only focusing on bigger picture metrics will tell you.