Why You Shouldn’t DIY Bookkeeping

Author: Accurate Accounting And More | | Categories: Accounting Services , Bookkeeping Services , Payroll Services

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Many budding business owners rely on themselves to handle various business tasks, including doing their own books to save money when starting out. However, dealing with bookkeeping matters means pulling your focus away from other important tasks requiring your attention.

For any business, time is money, and as a business owner, you really shouldn’t be wasting your time doing financial tasks. Instead, you should be focused on what you are good at in your business and growing it.

We at Accurate Accounting and More know how tempting it can be to do your own books and would like to help you understand how it could go wrong if you do them yourself. We have explained in detail three reasons why you shouldn’t DIY bookkeeping. Keep reading to know them.

1. You could end up paying more taxes
If you fail to expense the items correctly, it could lead you to pay more in taxes than you should, with hefty penalties and cash flow problems. For this reason, investing in a professional bookkeeping service dedicated to managing your finances will keep your business on top of essential tasks and prevent such unnecessary costs.

2. Likely to commit costly mistakes
You could make many mistakes, causing you to pay more to a professional to fix and correct all the errors. Know that it could cost more than hiring a professional in the first place!

3. Lack of expertise and skills
Bookkeeping requires a certain level of expertise and skills to be done correctly. You need to know the difference between assets, liabilities, equity, revenue, and expenses. If you don’t have any knowledge of bookkeeping, then it’s best to leave it to the pros.

Do the right thing - Hire a professional
While no license or certification is required to do your books, working with knowledgeable bookkeeping and accounting professionals will help to be sure everything is done properly.

These professionals can keep your financial records correct and up to date so that you can make the right financial decisions based on accurate information. Moreover, you can also save on taxes owed when done correctly.

For bookkeeping, it is not necessary to hire a CPA, but a bookkeeper will be a better option for several reasons, including

1. Their services cost less than paying a CPA.

2. CPAs may have more experience with taxes than bookkeeping, and they usually have a bookkeeper on staff but will charge CPA rates.

3. CPA’s are extremely busy during tax season and do not have time to complete bookkeeping

4. Bookkeeping professionals will keep your financial records up to date so that you will always know where your business is financially.

5. A bookkeeper will prepare financial statements and take the time to explain your financial position to you so that you understand how you are doing.

When business owners take care of their bookkeeping after hours or on the weekend, it keeps them away from precious family time. So is your family time worth more than a couple of hundred dollars per month? Once you decide to hire a bookkeeping professional, your time will be better spent working on your business, family, or doing anything else that makes you happy.

If you are looking for an accountant in Livonia, reach out to us at Accurate Accounting and More. We specialize in accounting, bookkeeping, payroll, tax reporting, QuickBooks®, and CFO services. With over thirty years of experience, we strive to meet each client’s specific needs. Whether your small business or a larger corporation, we can customize a program that fits your business and growth regardless of scale or industry.

Our services are extended to clients across Livonia, Detroit, Ann Arbor, Flint, Novi, Sterling Heights, Warren, Canton, Brighton, Ypsilanti, Redford, Westland, Northville, Plymouth, Farmington Hills, Farmington, and the surrounding areas.

To learn more about the services we offer, please click here. To get in touch with us, please click here