Why You Shouldn’t DIY Small Business Bookkeeping

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

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Most small businesses often place accounting systems at the bottom of the priority list. Business owners often get caught up in employee management, customer support, product development, marketing, and other more urgent aspects of a business. This means that they have very little time for bookkeeping, and when the time comes, they end up doing a shoddy job with their accounts.

So in terms of small business accounting, we at Accurate Accounting And More want to give you an overview of why you shouldn’t do it yourself. Keep reading to know more!

1. Inaccurate bookkeeping
As a small business owner, you might have to deal with a lot of paperwork month in and month out. Seeing that you are very busy, you will likely forget essential things like updating your books regularly. You might be late on filing your invoices or even make some mistakes when doing your payroll. Of course, this won’t seem too bad in the beginning. Still, going forward, it will result in miscalculation of profits, thus causing a loss in your business. Additionally, you will have issues with your vendors, and filing your taxes will be a huge fuss.

2. End-up paying higher taxes
There is a common misconception that DIY bookkeeping will save you money. At first, it might, but going forward, it opens you up to many financial errors, tax errors, hefty penalties, and cash flow problems, all of which can be avoided. Taking control of your business means also being on toes with your finances and everything around that. If you make any mistakes or miss certain deductions, you will pay higher taxes, especially if expenses are not coded correctly. Your financial records could be completely messed up, and it will take time for a professional to go through and clean up your books. Oftentimes the cleanup could be more costly than if you had a professional performing monthly bookkeeping services.

Do things right - Hire a professional
The main core reason you need to think about professional bookkeepers is that you lack the time or knowledge to do it yourself. Hiring a professional has one guaranteed advantage: you will never lose getting accurate reports on accounting and its mainstream criteria. They have the necessary knowledge of accounting to understand how to add expenses and income into the bookkeeping software properly. They can get you to a known financial position and keep you there with monthly bookkeeping services.

This will help with:

  • Knowing how your business is doing financially at all times.
  • Knowing when you can afford to purchase more equipment or machinery as your company grows.
  • Knowing how much you should pay in estimated taxes.
  • Have more time to spend with your family or friends by leaving your bookkeeping to a professional.

The bottom line
If you’re just starting out, the perfect way to achieve excellence in accounting, in the long run, is to outsource booking services. Pricing varies based on the individual needs of each company. However, think how valuable your time is when you spend several evenings away from your family and friends doing your bookkeeping after working all day in your business. Your free time is priceless!

If you are looking for an accountant in Livonia, MI, reach out to us at Accurate Accounting And More. We provide a wide range of necessary financial services to businesses in a variety of industries. With over thirty years of experience, we strive to meet each client’s specific needs. Whatever your needs, we will take the time to listen and help you form a plan that provides a successful solution. Your success is our success. Let our integrity, service, and knowledge give you peace of mind in knowing that we are here for you. We offer services like bookkeeping services, accounting services, payroll services, Quickbooks®️ services, tax reporting, CFO services, etc.

We offer our services 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.



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