Why You Shouldn’t DIY Accounting And Bookkeeping
Maintaining proper accounting and bookkeeping processes gives reliable measures of your business’ performance. So it is safe to say that your company’s growth and success hugely depend on it.
However, if accounting and bookkeeping play a major part, then, in that case, it definitely requires specialized talent with a solid background to take on this task.
Sure, there are many bookkeeping software packages available online that might convince you otherwise. It doesn’t mean you should do your own books!
To show you why you shouldn’t DIY accounting and bookkeeping, Misic Accounting has noted three key reasons in this blog. Keep reading to know what they are and to avoid unnecessary hurdles.
1. It can get complicated
Your bookkeeping and accounting records are critical for filing taxes (and avoiding fines and penalties), as well as determining cash flow, expenses, profitability, and growth of your business. Doing them incorrectly would lead to not just compliance issues but losses due to unnecessary penalties and lost business opportunities.
2. You may need to incur additional expenses
If your books are not in order or completed correctly, you could find yourself not eligible for certain lending as it’s impossible to present your business’ financial viability properly.
Fixing this could take months, especially if books need to be corrected going back many periods. This would most likely turn out to be more costly than simply paying to do things right the first time around.
3. You may lack the expertise
Accounting, bookkeeping, and tax knowledge are imperative to take on these tasks correctly. But since most entrepreneurs started their business because of a passion for a different field, accounting is not their strong suit. Also, the business owner’s valuable time does not need to be spent on tasks that do not generate income or move their business forward.
You may trust accounting technology platforms to be sufficient, and you don’t need a license to do your own bookkeeping, but outsourcing to an accountant is an investment that you can’t afford to make.
Do things right - Hire a professional!
A professional specializes in specific accounting, bookkeeping, and tax work. They’re knowledgeable and can much more efficiently complete the work necessary to keep your business compliant, as well as provide you with the necessary financial tools to evaluate your business and its operations.
A professional can also help with future planning, whether it be with budgets or forecasts or in regards to future taxes.
However, you should look to hire a professional that will be responsive and attentive to your business. What’s most important is developing a trusting and open relationship with the professional, as you’ll want to be able to get answers which might be uncomfortable to hear (although absolutely necessary!).
Generally, the prices range vastly depends on the size of your business, structure, employees, etc. You can expect to pay anywhere from $250 per month, upwards to $1,000 plus for larger firms, with more employees and revenues. It’s best to reach out to a professional you trust first and establish a rapport because choosing solely based on price may leave you with an unresponsive accountant. Consequently, you’ll get minimal value, if any, out of that engagement (even it’s cheaper).
A quote to remember,
“The bitterness of poor quality remains, long after the sweetness of low price is forgotten.”
- Benjamin Franklin
If you’re looking for a chartered professional accountant and bookkeeper in Kitchener, Ontario, reach out to Misic Accounting. As an experienced accounting professional, my mission is to provide you with the information you need to help you make informed decisions about your financial situation. I use the most up-to-date financial analysis and computer technology to ensure that I provide you with accurate financial advice in a timely and efficient manner. No matter your financial situation, I give all of my clients the attention they need and deserve. To learn more about the services I offer, please click here. If you have a question, I would love to hear from you. Please contact me here.
