So you own your own business and you make important decisions all day long; at some point you will have decided how the accounting is done for your business.
Should you do your own accounts, or have an accountant do them for you? Should you use a cloud-based solution, or opt for manual accounting?
There are many choices, but a lot of start-up businesses are choosing to save cash and do their own accounts.
Let’s explore the pros and cons of doing your own accounts.
Pros of Doing Your Own Accounting
By doing your own accounts you’re saving cash. You don’t have to pay an accountant, and in some cases, this can save quite a bit. More money to invest in other areas of your business.
You have total control
Because you, or someone you’ve appointed, are the only ones doing your accounts, you have total control over your finances, and you don’t need to discuss anything with a third party. This can save time and mean you can make quicker decisions.
You can change your processes easily
If you want to make changes to the way you do your accounts, this is easier if there is no-one else involved.
Cons of Doing Your Own Accounts
You’re losing out on important expertise - An accountant is a professional who will ensure you are compliant with all the latest rules and regulations. If you do your own accounts, you’re missing out on this experience and knowledge, which could detrimentally affect your business and its financial future. You also lose out on that extra advice about tax reliefs and incentives you may be eligible for.
If you’re not an accountant you’re more likely to make accounting mistakes
Unless you have an accountancy background, it can be very easy to make a mistake or to miss something completely. This could turn into a larger issue when it comes to filing your year-end accounts and tax returns.
A decision which might seem money-saving could end up costing you more. Factor in the cost of having an accountant correcting any errors, your time getting to grips with the principals of accounting, and the sheer hassle of spending time doing something you don’t enjoy.
After all, you didn’t go into business to become an accountant right?
Why not get in touch with us and see how we can help you.