Many small business owners start out thinking they will do everything they possibly can in their business to keep costs low, including doing their own accounting.  Some have learned the hard way that small errors can add up to a big mess.

I encourage our clients, unless they are experts in accounting themselves, to concentrate on what they do well and pay a skilled professional to do the accounting and bookkeeping tasks.  Even if it feels expensive at first, here are a few reasons to do it anyway:

1. Get the taxes right – The old cliché holds true, nothing is certain except death and taxes. If you have an expert doing the work, they will help you keep good financial records, submit the right forms to the right tax authorities on time, keep up on tax laws to minimize what you owe, and help you determine how much money to set aside for tax day.
2. Start out right so that you can grow – You might be a small business today, but one day you could be huge with vast amounts of data to manage. If you start out with a good record keeping system in place your life will be easier. Don’t wait until your business is big and busy to move from a paper system to an electronic one.  If you start out right you’ll have everything you need at your fingertips – to apply for loans, evaluate risk in taking on bigger projects, and accurate inventory records.
3. Manage your cash flow – You’ve made the sale, provided your product or service, but …..no payment. Without an effective invoicing system in place where are you? What about paying your bills?  Do you have the cash flow to pay them?  Bookkeepers and accountants can set up effective systems and help you manage the cash flow process.
4. Save time – Having an expert managing the books gives you time to focus on your areas of expertise: planning, getting leads, serving customers, doing the technical work. Or, even recharging so that you can give it your all again tomorrow.  The alternative?  Working all night or all weekend.
5. Know where you are – It’s easiest to make the right choice in a decision when you have access to useful, accurate information. Having good financial information available gives you the tools you need to plan and strategize for the short term, long term, and everything in between. Good accounting systems not only record history but provide information for projections and strategic planning as your business or the market changes.

If you are ever unfortunate enough to be required to pay fines and repayments to the tax offices because you saved money by doing things yourself, the money you would have paid for a professional will seem miniscule.

Need help knowing where to go from here?  Call for an appointment (931-456-4910) and we’ll help you develop a strategy to get you where you want to be.  Also… plan to attend the CBI Lunch & Learn workshops on accounting topics!