For small businesses, it’s often a necessity to keep expenses low. So I’m willing to bet you’ve probably managed your own finances and accounting so far. But is that really what’s best for your company?
Ask yourself: how much do you enjoy doing your own accounting? Does it stress you out or take longer than it should? It might be better to hire an accountant. On the other hand, if maintaining your accounts is easy, and you’re adept at it, DIY should work just fine.
Let’s look at both sides to find out what’s best for your company.
Managing Your Own Accounting
For a lot of us, accounting is as simple as having a QuickBooks account, tracking expenses and income, and sending out a few invoices. For the most part, this is easily manageable.
Once you’ve assigned the appropriate categories for your expenses so they’ll match up to what your tax filing system looks for, it’s typically pretty simple to record your expenses.
If you’ve got more time to work on accounting than money to hire someone to help, and if you don’t mind spending the time, doing it yourself is probably ideal.
But what happens when you incorporate or your taxes get more complicated come Tax Day? You’ve got a whole year’s worth of accounting to unravel if it’s not done correctly. What you think you saved by not hiring an accountant you might end up paying to — yes, an accountant — to correct your mistakes before your taxes can be filed.
You’ve actually got a few options with regards to hiring an accountant. You can hire an accounting firm or professional part time — many offer packages for just a few hours of service each month at reasonable prices, or just hire an accountant for tax season. If your needs are greater, consider hiring an employee, either part- or full-time.
You’ll likely find that having the extra help for accounting tasks will free you up to work on other areas of your business!