Should you do your own bookkeeping? While that may sound like a small question, it can be tough for even the savviest of small business owners to answer. This post will help you decide which route is best for your situation. Accounting mishaps can be costly, so it pays to make an informed decision. Small business bookkeeping services may offer an appropriate solution for your business.
Do you have the necessary accounting experience?
Many small business owners, especially those with an aptitude for figures and a good understanding of basic accounting practices, start out doing their business accounts. When a company has just started up, money is tight, it can make sense to prepare your accounts.
Do you have the necessary accounting tools to run your books? Do you understand the different aspects of business taxes? Understanding small business taxes can be extremely tricky, and you may not be claiming certain types of expenses that could reduce your tax bill. Not having the correct accounting experience could put your small business at a big disadvantage. Having accurate and timely financial data is how small businesses are able to make better business decisions and grow. Not to mention, making a mistake in the books could end up costing your small business a ton of money ultimately being the demise.
Do you want to be in control?
If you want the ability to know your business’s financial position at a given moment, you want control. If you want the ability to send invoices and log expenses when you deem it necessary, you’re a fan of control. Conversely, if you’re comfortable forwarding financial transaction information on to your outsourced bookkeeping services, control, in the accounting sense, could be a little less important to you. If you are able to identify how much control you want over your business’s financial health, you’ll be able to determine whether or not you want to do your own bookkeeping.
Do you have the time?
Small business owners are often pulled in a million different directions. They will likely say they do not have time for bookkeeping. Time is definitely a precious commodity when running a small business, and if you do not feel like you have the appropriate time to spend on bookkeeping, outsourced bookkeeping services should absolutely be considered.
Spending enough time to ensure your books are 100% accurate is essential to the success of your small business. If you are not willing to make the time commitment, we highly recommend you start shopping for outsourced bookkeeping services to do the job for you.
Do you even care?
If maintaining accurate accounting records isn’t interesting to you, then you probably aren’t interested in doing your own books. And that’s OK! Many small business owners prefer not to handle their own books.
Does it make economic sense?
Does doing your own bookkeeping make financial sense? Let’s acknowledge that bookkeeping costs vary by industry, region, complexity and much more. If your previous books are incorrect, it is going to be more expensive to have a professional come in and correct them. For the most part, outsourced bookkeeping services can actually save your small business money while ensuring 100% accuracy.
Here are a few other things to consider before you attempt your bookkeeping on your own.
Unless you are a bookkeeper by trade then you are not a bookkeeper. If you went to school for business you most likely took a few general accounting classes, but are you really ready to handle your own bookkeeping? As a small business owner, your focus should be on growing your small business. You need to consider the opportunity cost of attempting to handle your own bookkeeping. Are you actually going to save money by handling your own bookkeeping? Is your time better spent handling other growth-oriented tasks?
2. Inaccurate Bookkeeping
If you decide to handle your bookkeeping completely on your own you are most likely going to make some mistakes. Knowing the difference between an expense, asset and liability is crucial. If you are already confused then you need to think twice about do it yourself bookkeeping. Using inaccurate financial reports to make decisions can have a lot of negative outcomes. If you make mistakes in your bookkeeping then you don’t have a true way to measure how your business is actually performing.
3. Not a Powerful Bookkeeping System
Another concern with doing your own bookkeeping is that you might not get the most out of QuickBooks, which can really short change your business. You should be able to use your bookkeeping as a business tool to aid you in making key decisions.
If you want to handle your own bookkeeping we totally understand, but we wouldn’t recommend attempting your business bookkeeping without the help of a professional. Handling your own bookkeeping can actually teach you a lot about your business and as you grow understanding your bookkeeping will be beneficial.
If you do turn to outsourced bookkeeping services, in the beginning, to get the system set up properly you should be able to avoid errors, increase efficiency and develop a powerful bookkeeping system that can help you grow your business.
Limitless Investment and Capital Outsourced Bookkeeping Services
As expert bookkeepers and accountants, the Limitless Investment & Capital firm is here to find you solutions to your bookkeeping needs. We don’t take shortcuts with your books as you don’t take shortcuts with your business. You deserve accurate, real-time reports that help you increase cash flow so that your business can grow, not stagnate.
Here are the reasons to choose Limitless:
- Top Team of Experts
- Super Responsive Support
- Flawless Bookkeeping
Call us TODAY to get started!