The majority of business owners do not particularly enjoy accounting or bookkeeping. A lot
of the time, it can eat up into their personal time and they end up doing it late at night or
when they’d prefer to be spending time with their family.
Some people think that hiring an accountant is a luxury rather than a necessity, but in most
cases, it is vital for a business owner to have an accountant. Hiring an accountant or
bookkeeper is a business decision, and there are many benefits to it that will positively
affect your business. Investing in professionals can bring substantial returns.
Both accountants and bookkeepers have lots to offer, such as business advice, improved
cash flow and saving you time or money. They can take away the financial stress you may
have surrounding your business, allowing you more time to focus on the growth of your
business and the things that matter most to you.
Three Negatives Of DIY Accounting & Bookkeeping
There are a fair few negatives when it comes to DIY accounting and bookkeeping, but below
we discuss the most notable ones.
An Overwhelming Workload – Business owners have a lot to do themselves as it is, and being responsible for the accounting and bookkeeping will add further pressure and will consume a large chunk of time.
Inexperience – Being inexperienced and lacking confidence when it comes to accounting and bookkeeping can increase the risk of encountering problems, such as filing compliance paperwork late, books with mistakes and no reliable information that allows the business owner to make business decisions.
Having To Find The Time – As we have briefly mentioned above, accounting and bookkeeping demand time. Business owners have very busy work schedules, and it is not ideal for this to suffer due to spending time on accounting or bookkeeping. Business owners need as much time as they can get, to focus on the parts of their business that are most important to them.
Since accountants and bookkeepers can take care of financial activities on behalf of
businesses, hiring an accountant or bookkeeper is a wise choice, especially if the
business owners’ time is strained.
The Benefits Of Getting An Accountant Or Bookkeeper
The benefits of using an accountant or bookkeeper are endless, so below we have pointed
out some main areas where they will help your business immediately.
The knowledge to make better decisions
Accountants and bookkeepers will always tell you how your business stands. The work that an accountant or bookkeeper will do for you will highlight short-term cash flow and long-term profitability, as well as allow you to see income and expenses as they happen.
Research conducted by the AVN for Accountants found that 80% of businesses fail in
the first 5 years, largely down to the business owners having little to no experience
in record keeping, paying taxes incorrectly and having limited knowledge of
financing.
In addition to this, accountants and bookkeepers provide a whole new wealth of
knowledge when it comes to working with your business. They also offer endless
support to your business and will give you advice at any time.
Tidying And Organising Your Books
As we have discussed previously, DIY bookkeeping can lead to data entry mistakes and late or lost documentation. Since accountants and bookkeepers have tons of practice in this field, they can neaten up your books one and for all.
It is also likely that they will set you up on a cloud accounting software, such as Xero,
which makes it so much simpler and quicker when it comes to recording income and
expenses, and also bookkeeping and accounting as a whole.
Improving your profitability
Both accountants and bookkeepers can help you to identify and remove any unnecessary costs, and also discover what drives the most profit in your business.
These are your key performance indicators (KPI), and when these improve, your
profit and revenue will too. KPIs also allow you to make informed decisions in your
business.
No More Missing Deadlines
Filing or paying taxes late can result in interest and penalties, however, once you have an accountant on your side you won’t miss any more deadlines. Any good accountant will do the necessary work in good time, meaning that tax filing will be a smooth and stressless process. You will no longer have to dread tax season.
Also, hiring an accountant can often reduce the amount of tax you must pay, such as
if you requested tax planning services from them at the start of the year. Putting this
strategy in place will help to keep more money in your business.
How To Get The Best Value From An Accountant Or Bookkeeper
When searching for an accountant or bookkeeper, we recommend choosing one that can
automate your bookkeeping using cloud accounting software. Using an accounting
the software will boost efficiency for both you and your accountant/bookkeeper, as it can
automatically import your businesses’ financial data, which means humans can be less
involved and more time will be saved for the both of you.
The Bottom Line
Hiring an accountant or bookkeeper is a business decision and one that will have a great
return. Thank you for reading this article and we hope it has been informative and
interesting to you.
If you are looking for an accountant, book a free consultation with us today. Here at
Suzanne Lock Business Services, we make your business, our business. We are so passionate
about helping businesses to grow and develop, and we have a personal touch that you
won’t find anywhere else.
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