November 13, 2018
Many small and medium business owners take on the role of accountant and bookkeeper in an effort to cut costs, often spending late nights and weekends managing the books with most believing that an accountant is something of a luxury.
If you’re anything like this, we’d like to share with you why securing the services of an accountant for your small to medium business is not a lifestyle choice, but rather a business decision that actually makes good financial sense.
As well as ensuring you’re on top of your tax obligations, an accountant can help you identify ways to save in your business and even help you grow your business if you’re just starting out. What’s more, they’ll give you back your after hours and weekends so you can do the things you’d rather be doing.
Disadvantages of DIY accounting
By not outsourcing your bookkeeping and trying to manage it all yourself, you could be missing out and may even be creating added risks and extra costs.
- You could miss out on tax breaks by not claiming all of your expenses. Or you could underestimate your tax bill and end up in trouble with Inland Revenue.
- Your invoicing may fall behind which can be a drain on your cash flow and result in more work when you need to chase up unpaid accounts.
- Late filing of tax returns results in fines, and mistakes can take hours to fix.
- Your financial information may not be up to date and hence be unreliable when trying to make future projections.
Benefits of outsourcing accounting
An accountant can assist you in some key areas that will ultimately be a benefit to your business:
- Trying to manage your own accounting can lead to mistakes through data entry errors, lost documentation and even missed tax breaks. An accountant can help tidy up your books once and for all so you have accurate records backed up by the relevant documentation. They can also assist you with setting up accounting software to make it easier for you to maintain good records.
- An accountant will complete your tax return on time and ensure it is accurate so you don’t have to pay penalties and interest. Your accountant doesn’t miss deadlines so tax filing becomes a smooth and stress-free process.
- An accountant can help you set up an automated invoicing system, so you can send invoices quickly and efficiently and check at any time to see who still owes you money. Not only will that help improve your invoicing, it means you have more control over your cash flow, the lifeblood of any business.
- An accountant will provide you with sound financial advice so you’re clear on your obligations at any time.
At Absolute Accounting, we help small to medium businesses reach their full potential, both professionally and financially. We’d love to help you too! If you’d like to find out more about our services or talk to one of our accountants, give us a call on +64 7 349 0795 or email me on email@example.com.