5 Top Reasons Not to Do Your Own Bookkeeping
Business owners thrive on the DIY mentality. Consequently, many small business owners think they should be able to do it all, including keeping their books and financial records. After all, user-friendly software like QuickBooks makes DIY bookkeeping attractive. So, it’s no surprise that business owners find it especially difficult to let go of DIY bookkeeping and hire a bookkeeper, like Prosperity Bookkeeping. Let’s look at 5 reasons why DIY bookkeeping doesn’t work for many small business owners.
Do you really want to spend your precious time on bookwork?
Bookkeepers handle a range of financial activities for a business, from bill payment to payroll and tax filing. All of these business activities take time. Business owners who spend time in the office with DIY bookkeeping aren’t pursuing new accounts, managing employees, or engaging with customers. Bookkeeping takes the boss away from working on business growth. Plus, who wants to spend their nights and weekends playing catch-up when accounting gets put off too long?
Do you wonder if you’re messing up or missing out?
Small business accounting requires conscientious tracking of financial transactions and accurate record keeping. QuickBooks appeals to small business owners because it’s easy to use. To some extent, that’s true. But QuickBooks doesn’t make you an expert bookkeeper any more than Google docs make you a best-selling author. If you don’t fully understand data entry, accounting standards, tax compliance, and other basic business operations, you can botch your accounting records quickly, even with QuickBooks software. The worst part is that correcting accounting errors is like a game of whack-a-mole. When you fix one problem, three more crop up. Plus, a DIY bookkeeper might miss out on financial forecasting and business advisory services that can take a business to the next level.
Would you rather do a million other things instead of bookkeeping?
Not many people feel a zest for bookkeeping, like Kristie Van Pay and the Prosperity Bookkeeping team. Think about it: People excel when they are passionate about their work. If bookkeeping is a task you dread, then DIY bookkeeping isn’t right for you or your organization. Our team thrives on doing the mundane but critical tasks of paying bills, handling payroll, filing tax reports, and hundreds of other accounting details that small business bookkeeping requires. Bookkeeping shouldn’t just be busy work for business owners or administrative assistants who aren’t passionate about giving it their all. When DIY bookkeeping zaps your energy, it’s time to outsource it to a professional.
Does tax season make you break out in a cold sweat?
Penalties for inaccurate business reporting and late filing can cost you a lot of money. Plus, IRS audits are time-consuming, stressful, and potentially costly. With the IRS lurking over your shoulder, can you afford to be uncertain about your financial records? Accounting and tax planning gets more complicated every year. Therefore, it’s challenging for small businesses to know and comply with all of the latest tax guidelines. Is it worth taking the risk of DIY bookkeeping? A professional bookkeeper like Prosperity Bookkeeping can organize records, file tax reports, and get financial statements ready for tax time.
Do you know where your money is going?
Accurate and up-to-date financial reports provide insight into how well your business is doing. Business owners use these reports to think strategically about income, capital expenditures, cash flow, balance sheets, and more. This is when a bookkeeper becomes valuable. Companies with accurate, well-organized statements have financial data at their fingertips. Business owners, investors, and creditors have a clear understanding of the company’s fiscal well-being. Stakeholders find it easier to make thoughtful business decisions with financial statements as back-up.
Work with a Professional Bookkeeper
While DIY bookkeeping might work well when a business first opens, hiring a bookkeeper is a smart decision once the business gets rolling.
By outsourcing bookkeeping, small business owners:
- Free up time for other tasks
- Remain compliant with tax regulations
- Do tasks that energize them
- Are prepared to file corporate taxes
- Gain valuable financial insights
Prosperity Bookkeeping offers a proven process that has business owners spending less than one hour per month on bookkeeping-related tasks. So, ditch the DIY bookkeeping! Schedule a consultation today.
About the Author: Once a mild-mannered reporter and editor, Joan Koehne took on the persona of her alter ego, Wonder Writer, to launch Writer to the Rescue, the content writing division of Packerland Websites. Wonder Writer is “saving the world one word at a time” with power-packed content marketing for digital and traditional media outlets.