I get it – as a business owner, every dollar counts. Going DIY wherever you can is appealing. But I have learned that there are times it’s good business sense to hire the professionals both to bring an expertise that I don’t have, and to free up my time to do the things I excel at.
When it comes to your accounting, you may be tempted to do everything yourself rather than hiring a professional bookkeeper or accountant.
But is DIY accounting the most sensible option for your business? And why might partnering with an experienced accountant be a valuable investment in your future, and even save you money today?
The 5 big challenges of managing your own accounts
At the initial stages of founding your business, creating a few invoices, paying a few supplier bills and making sure there’s cash in the bank may be well within your abilities.
However, as the business grows and you take on more customers and employees, your finances are likely to get far more complicated – not to mention far more time-consuming. Should you still be managing your accounts solo at this important stage of your growth?
Here are five of the common challenges of going down the DIY accounting route:
- The knowledge gap – grasping the finer points of accounting principles and tax regulations is complex. If you try to navigate these financial complexities without the right knowledge and experience, you greatly increase the risk of errors, missed deductions, poor record-keeping and non-compliance with company tax law.
- The drain on your time – Managing bookkeeping, payroll, day-to-day accounting and tax filings takes a lot of time out of your week. If you’re spending a large chunk of your week working on finance admin, that’s time you’re NOT spending on growing the business. As an ambitious owner, you should be concentrating on business development and the other strategic tasks that will push your growth – not doing the books!
- Staying up to date with the regulations – Company tax laws and accounting regulations change frequently. If you’re not on the ball with the latest regulatory changes, your business may not be in compliance. You also may also miss out on the latest government incentives and tax reliefs – financial perks that could well be the key to funding the next stage in your business expansion plans.
- Anxiety about a company audit – going through a company audit from an external auditor can be stressful. Depending on the status of your business, you may well have to comply with the rules for regular auditing. But without an accountant, your record-keeping may be inconsistent and incorrect, making it more difficult, time-consuming and disruptive to provide what the auditor requires.
- A lack of strategic insight – good financial management drives your strategic insight. The better your accounts, the higher the quality of your finance data, reporting and management information. And this data and reporting can be a goldmine of information when making big strategic decisions, setting budgets and forecasting cashflow etc.
How working with an accountant turns these challenges into business benefits
Having full responsibility for your own business finances is a major drain on your time as an owner and business leader. But the good news is that partnering with an accountant can very quickly lighten this load and get you back to focusing on your business.
By engaging an accountant to take on your financial management, you get:
- The knowledge of an experienced finance professional – when you hire an accountant, you add a financial expert to your team. They’ll help you navigate the complexity of accounting, and will keep your records clean, consistent, and accurate.
- More time to focus on the business – by delegating your bookkeeping, payroll, accounting and tax filings to an accountant, you free up valuable time. This gives you more time in the day to talk to customers, develop growth strategies and build relationships with clients, partners, lenders and investors.
- Peace of mind when it comes to an audit – with an accountant managing your accounts, you can rest assured that you have the best possible record-keeping, reporting and financial compliance. This is a major bonus when you face an external audit process. Your accountant can even work with your auditor during the audit process, cutting down the potential stress and keeping you focused on running the business.
- Expert strategic guidance – accountants do way more than just crunch numbers. Your accountant will work with you to analyze your financial data, manage your cashflow, identify patterns and trends and provide the valuable insights you need to inform your decision-making. An accountant is a key part of your management and strategic team, helping you drive the success, efficiency and profitability of your business.
Talk to us about outsourcing your accounting
Hiring a great accountant is a great investment in your business. Instead of getting bogged down and frustrated by doing the bookkeeping yourself, just hand over the financial management workload to the experts.
We’re here to lighten the load, sort out your accounts and put you back in complete control of your finances and strategic decision-making. And we know you will be delighted with the work we do.
Get in touch here to discuss taking on your accounting tasks. As always, our consultations are complementary, no-pressure, and no-obligation.
