Do-It-Yourself Accounting May Be Bad For Business
Owning a business comes with a whole slew of responsibilities. Not to discredit the range of expertise and experience one has while running a business; there are just some things that should be left to the professionals. Accounting just happens to be one of those things. Do-it-yourself accounting is never a wise idea.
It may seem counterproductive to think that hiring an outsourced accounting company will save you money, but it’s not. In the long-run, internal accounting practice errors and missteps will end up costing your company more money than an accounting firm ever will. So, what are you really getting with an outsourced accounting firm?
The whole point of keeping up-to-date records and analyzing your company’s finances is to get a clear picture of your performance. With a more in-depth analysis, you can highlight areas of growth, patterns, and see where you stand with your revenues and expenditures. If you know where you stand, you can make the necessary adjustments and strategize for the future.
Outsourced accounting firms are also well-seasoned in consulting. Should you ever run into any issues and are unsure of your next move, the financial finesse of an accounting professional could lead you in the appropriate direction with expenditures, revenue, and investments.
Procedure, procedure, procedure
No matter what kind of business you’re running, there are always appropriate accounting practices and procedures to follow. It may seem like misplacing a receipt here and there is no big deal. You can always go back a few months and switch things up in the books, right? Wrong. A reconciliation is performed every month, and every month must be balanced to ensure a clean start to the following month, and so on. You want to know each month is accounted for and the financial operations of your business are in working order. How is reporting going to help the prosperity of your business if they aren’t accurate?
Having an in-depth understanding of tax law is not common. As a business owner, tax law isn’t a knowledge set that can be picked up quickly either. Maintaining a good standing with the IRS is essential. As a business, you must be mindful of social security tax, sales tax, payroll taxes, etc. Beyond the knowledge of these taxes, the timely filing and curation of these necessary forms are key. An outsourced accountant will ensure tax deadlines are met, while implementing any tax breaks your company may be eligible for – saving you even more money.
The benefits of using outsourced accounting services far outweigh the costs of do-it-yourself accounting. As you can see, a superficial understanding of each of these accounting practices will just not do. The experts at Tobin & Collins are exceedingly qualified to meet your accounting objectives. Contact Tobin & Collins to help get your company’s financial picture as perfect as can be.