Updated: Sep 9, 2022
Why it's not advised to DIY bookkeeping/accounting. Why should you hire a bookkeeper that is experienced.
If you run a small business, you must decide whether to do your business bookkeeping yourself or outsource it. There is no one right answer that applies to all businesses, but you should consider certain factors to come up with a decision you are comfortable with. If you're considering whether to keep your books yourself or hire a bookkeeper, here are some points to remember.
Time + Money
Clearly, it takes more time, which costs you more money and learning the bookkeeping process is sort of a hassle. For example, often, clients who have prepared their books using the diy bookkeeping, come to us and believe their books are ready for taxes. However, after we take a quick look at their accounting software we realize their missing transactions which can happen because of a couple of reasons. The number 1 reason is that when they set up their bookkeeping software such as QuickBooks Online or Xero, they only brought over 3 months worth of financial data when they needed to bring over let's say 6 months or more
Inaccurate financial Records
Often times with DYI books, when we open the reconciliation window, we find out no reconciliations have been performed or that they have been forced. Forcing a bank reconciliation by adding the amount of missing data through a journal entry or income and expense transaction, will cause your data to be inaccurate. This will cause your financial statements to be inaccurate, which in turn will make your tax return incorrect. Relying on any report such as a cash flow statement that's coming from these books, would be a mistake that could cost you overdraft fees because of an overestimation of cash.
Hiring a competent and experienced bookkeeper, such as ours, who also happens to be a tax advisor, will ensure that your bookkeeping is in order on a regular basis. Which will ensure that you know your true financial status since the financial reporting is accurate. Our bookkeeping service package services are ideal for small business owners who can't afford a full-time employee. Or mid-size and growing businesses who wish to take advantage of the cost savings they gain from outsourcing bookkeeping and their accounting systems. They save on overhead by saving on employer costs starting at wages down to accounting software costs. The time and money business owners will save as a result of outsourcing their accounting, is without a doubt one of the smartest business decisions you can make. Again, let us handle your bookkeeping needs so you can focus on the day to day needs of your business.
Should you decide you want to give this a try on your own, as a small business owner, I would recommend using Quickbooks Online. The self-employed version seems to be the best version for freelancers starting out, it's a good way to track of expenses and income and ensure you have reliable financial data. Using a software like Quickbooks or even Weave ensures you have a balance sheet, which is a crucial way of ensuring your transactions entered are balanced and can easily be handed to your tax preparer come tax time.
I also provide year-end clean up services, and should you need help fixing something if you're stuck in the process.
Comment below or contact us for a quote: