While some might automatically equate saving money on their business with doing something themselves, others will easily admit that only a seasoned professional will be able to do their accounting properly.
And to be honest, there are arguments for both sides. But like always, there are a lot of things to consider to make one side or the other lean in your favor.
How Complicated Are Your Books?
If you have few transactions which often repeat, you might not need to invest in hiring an accounting firm. For simple cases, accounting software will suffice. Even if technology is not your friend, look for accounting courses to improve your skills or get some coaching classes that will give you a personalized understanding of your books. If you have complicated transactions or a high volume of inputs, you might want to enlist the help of an accountant. An option if you’re looking for a cost-saving method, is to get a professional to set you up and then maintain the day to day yourself.
How Long Does It Take You?
Business owners have a lot on their plate to begin with. The last thing they need to do is waste time mucking around in accounting software. Remember to value your own time and that professionals can do a lot more than you in a shorter period of time. True, the price tag on the time that is used might be high, but remember that at least you can trust that it is done better than what you would do. On the flip side, you know your business inside and out. It could just be quicker for you to quickly hammer it out yourself.
Do You Know the Rules?
Accountants know what can be expensed, what can’t, the amortization period on purchases, ways to qualify for tax breaks and more. This is part of the benefits of working with them, as to acquire all this knowledge yourself would likely take a lot of time and research. With time, you might learn some of these yourself, saving money on professional services, but if you aren’t that sure, some qualified help could be appreciated.
What Are Your Risks?
Would errors in your accounting translate into a painful audit, fines, or even imprisonment? If you are a small fish, you likely wouldn’t go to prison for a small error in your accounting. However, once you employ people, messing with the numbers can have greater implications. When you outsource, you also outsource your risk to your accounting firm.
So now that it’s all on the table, are you more of a DIY-er or are you considering outsourcing?