As a business owner, you have several decisions to make every single day. Some of these are small, some are large. One of them should certainly be about the accounting processes you adopt.
Do you currently do your own accounts, or do you hire an accountant to do them for you? Do you use digital methods, or do you opt for manual accounting?
There are many choices to make, but more and more businesses are actually choosing to save cash and do their own accounts.
Not sure if this is the right route for you? Let’s explore the pros and cons of doing your own accounts.
Pros of Doing Your Own Accounting
These are the advantages of choosing to do your own accounts.
• Money Saved - By doing your own accounts you’re saving cash. You don’t have to pay an accountant, and in some cases this can be quite a lot of cash saved. This can then be put towards other parts of your business, or growing your success faster as a result.
• You Have Total Control - Because you’re the only one doing your accounts, or a person within your office, that means you have total control over your finances, and you don’t need to discuss anything with a third party. This can save time and help you make decisions faster.
• You Can Change Your Processes Easily - If you want to make changes to the way you do your accounts, you can do this far easier if there is no-one else involved.
Cons of Doing Your Own Accounts
There are of course downsides to doing your own accounts.
• You’re Missing Key Knowledge And Experience - An accountant is a professional who knows their business like the back of their hand. By choosing to do your own accounts, you’re missing out on this experience and knowledge, which could detrimentally affect your business and its financial future.
• It is Easier to Make Mistakes - Unless you have an accountancy background, or you’re extremely knowledgeable yourself, it can be very easy to make a mistake or miss something completely. This could be a huge issue when it comes to filing your taxes.
• Tax Filing Time Will be Stressful - When tax filing time comes around, this is bound to be a stressful experience, because you have to do everything yourself.
These are the main pros and cons to take into account when doing your own accounts. There are of course advantages to it, especially in terms of a good amount of cash saved on the salary of a highly experienced professional accountant, but you’re also missing out on their expert knowledge.
You have to make the right decision for your business, and take all aspects into account. Is saving money worth the loss of experience? Are you knowledgeable enough yourself to make this saving a reality? These are all key questions to ask, before you make a decision which could shape the future financial performance of your business, and in some ways, the future survival.
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- The Capex Team