Should I do my small business accounting myself?

‘It sounds extraordinary, but it’s a fact that balance sheets can make fascinating reading.’

Mary Archer.

Small business owners are constantly thinking about managing money. These thoughts revolve around minimizing costs, optimizing expenses, and maintaining a healthy cash flow. When reviewing what needs to be done with available funds, the small business owner often takes up multiple roles, including finance management. This may seem like a good idea since hiring a financial expert, bookkeeper or accountant is an additional cost.

Before you choose to do your accounting yourself, can you confidently answer the following questions: –

1.      What financial reports do I need to generate?

2.      What is the difference between single entry and double-entry bookkeeping?

3.      Which tax laws do I need to be aware of?

4.      What five key accounting terms must I know and understand?

5.      Which accounting software system is the best for my needs?

If you stumble in answering any of these questions, you need a qualified accountant’s services to keep your books in order. Remember, as a small business owner, you should focus on your business rather than in your business so that you can thrive.

Here are a few reasons why getting a bookkeeper or accountant is essential.

Experience Time Freedom

Focus on your core business and avoid being pulled in different directions. Stretching yourself too thin will lead to things falling through the cracks, and with financial management, this could cost you dearly in fines or penalties. Being effective means sharing responsibility with individuals who have the unique skills to handle tasks for the benefit of the business.

Prevent Tax Panic

For many small business owners, financial management becomes urgent when it is time to file taxes. There is a sudden scramble to figure out finances for the past twelve months, leading to endless hours of stress and financial acrobatics. Without the proper financial knowledge, you may be unclear on tax breaks or credits that you can benefit from.

Think About the Future

Where do you want your business to be in the future? How do you want to guide your growth? Working with an accountant is a sustainable and logical way to make sure that you stay on course. In addition, access to financial information that you can analyze will help you make decisions that build up the health of your business.

The barrier that the small business owner needs to overcome is the ‘cost’ barrier. It is not necessary to hire an accountant or bookkeeper full time – and be responsible for their benefits and other hiring expenses. It is possible to work with a virtual accounting and bookkeeping firm within your budget and desired output. This can help ensure that your finances are in order each month and enable you to use financial information to guide decision-making.

And yes, it is necessary to work with an accountant or bookkeeper year-round and ensure you are always on top of compliance issues. Working with a professional each month will prevent you from falling victim to your blind spots, such as huge unplanned tax liabilities, as you grow.

Schedule a call to discover the accounting, bookkeeping, and part-time CFO options available to you as a small business owner. Let us help you gain the freedom to do your business with worry-free financial management.