It might be tempting to save a few dollars now and avoid hiring a professional accounting firm to deal with your personal or business bookkeeping. But going the DIY-accounting route can end up causing you more than it’s worth. At worst, it might get you in trouble with the law.
Here are three main reasons why you should not be doing your own accounting.
1. You Might Make Mistakes
This can be a major issue. While we all make mistakes in life and in business, accounting mistakes can cost you dearly. The IRS and other financial regulators will notice these mistakes, and in the end, they may cost you a hefty fine.
If you’re not organized, you could be missing a lot of vital business information you need to correctly file your taxes on time. A bookkeeper or accountant will keep track of this information for you all year, not just at tax time. This will give you a better overall understanding of your company’s finances and help you make better investments.
Accounting for your business becomes more complicated when you have employees. Common mistakes include not filing employee payroll taxes, issues with HMRC filing, non-reporting of employee changes, not issuing P45/P60/P11 forms, and not calculating or carefully tracking sick and/or maternity leave.
2. You Have Other Things to Manage
When you own a business, you have a lot of things on your plate. You have to manage your employees, manage production, and keep up with the market, all while making sure that you’re remaining profitable.
On the surface, it may seem like it’s less expensive to do your own accounting. In actuality, your time is also extremely valuable. You’ll waste a lot of it pouring over spreadsheets and acquainting yourself with complex tax codes instead of running your business.
3. You May Leave It Until the Last Minute
Accounting takes time—more than you might realize if you’re not an experienced bookkeeper. However, as discussed above, you likely have a lot of other things to worry about besides getting your bookkeeping done. This may mean that accounting tasks that need to get done get pushed back until the last minute.
By leaving these tasks undone until they are due, though, you’re going to put yourself in a tough position. You’re leaving yourself open to making more mistakes that might have been avoided if you had more time to review your tax forms and calculations. Don’t get fined for making calculation mistakes you could have avoided by taking your time—better yet, hire a professional bookkeeper to do it for you!
Get Your Business Accounting Done Right
Hiring a professional accountant in Aurora or Denver will ensure that your business records stay organized and that any accounting services you need are done carefully.
No more crunching numbers late into the night and worrying about regulations you’re not intimately familiar with. Consider how an accountant will help relieve some stress and take some of the responsibilities of owning a small business off your shoulders and into capable, trustworthy hands.
