We understand running a business is complicated and are all too aware of the dangers of DIY accounting. We all want to run an efficient business, save money, and see our bottom line grow. Each and every day we work with our clients to help their businesses do just that. Our biggest piece of advice—use a professional bookkeeper and don’t try to go it alone. Today we’ll address some of the risks when you try to be your own accountant.
Audits happen. Even if you’ve done everything above board and haven’t acted unethically an audit can cause major headaches. A simple clerical error can look like your business committed fraud and unless your records are perfectly organized it can be difficult to disprove. Rather than keep your own records and file your own taxes, use a professional who knows exactly what they’re doing.
Running your own business is all-consuming. At any given moment, you’re the owner, receptionist, customer service representative, delivery person, bathroom cleaner, manufacturer, and accountant. All too often, the accountant is the lowest priority of all your jobs and the simple tasks are pushed off. When the time comes to file quarterly or yearly taxes, you’re scrambling. That’s a problem and simple mistakes occur. Hire a professional.
At quick glance, doing your own accounting may seem cheaper than hiring a professional. But what’s your time worth? If you spend an hour each day balancing your books and managing payroll that adds up to 20 hours each month. At $75 an hour, that comes to $1,500 each month. We’re cheaper.
Two of the most often failed subjects in college—accounting and math. They’re hard. Professional accountants and bookkeepers study for years, continually further their education, and hone their practice over time. Tax laws are constantly changing at the state and federal levels and small changes can have serious effects on your business. Hire someone whose job it is to manage this process for you.
Balancing your books on the back of a napkin doesn’t work. Even using a spreadsheet is problematic. Counting House Associates is familiar with a range of accounting software and will work with your business to determine the best approach for you.
Avoid the dangers of DIY accounting and work with a team of business professionals. Schedule your free consultation with Counting House Associates today.