You’re starting a small business or you’re taking over something a little bigger. Your business ventures are exciting but there’s so much to think about. One of those is your bookkeeping and accounting needs. It’s time to think about hiring someone but is this the best option for you?
There are many pros and cons to hiring someone to handle your bookkeeping and accounting needs. Here’s a look at each one of them.
Pro: You’ve Got a Professional Handling Your Accounts
The biggest benefit is that you’ve got someone who knows what they’re doing handling your accounts. There’s nothing worse than trying to figure it all out for yourself and missing something important. You can end up filling out the wrong information or not paying enough tax and, soon enough, you have the IRS on your back.
When you get a professional, this is less likely to happen. You can be audited less because your accounts don’t look iffy and you have someone to handle it all when you are audited. It’s easier to run your business and you can end up with more money in your pocket as a professional makes sure you use all the tax loopholes and deductibles available to you.
Pro: You Have More Time Elsewhere
Time is money in business. When you do your own bookkeeping and accounting, you end up wasting time on an area that you have no expertise. Sure, you could teach yourself, but why bother when you can hire someone else? Spend more time elsewhere, in parts of your business that definitely need you.
You’ll find your business far more enjoyable to run. There’s less stress trying to deal with other parts of your business.
Pro: You Can Save Money in the Long Term
Hiring someone else to do your accounts will help you save money in the long term. The downside is you do need to spend money first. If you’re only just starting out in business, the idea of spending money on something you could do yourself can be scary. You want to save money everywhere you can.
However, an accountant or bookkeeper can keep an eye on your expenses. They can help figure out where your tax deductibles are and talk to you about expenses to make sure you’re definitely spending money in necessary places.
Cons: You Can Be Disconnected from the Finances
One of the scariest elements of hiring someone for your bookkeeping and accounting needs is that feeling of being disconnected. You don’t know as much about your businesses finances as you would if you had full control of everything. It’s possible to spend money without realizing it because you’re not keeping a close eye on things.
However, a good bookkeeper or accountant will keep a close eye on things for you. They’ll set up monthly meetings with you if you want, so you can run through all your accounts and talk about your finances. You can be as involved as you want to be.
It’s time to think carefully about your bookkeeping and accounting needs in your business. Why are you doing it yourself? There are far more pros than cons by hiring someone professional.