24 Sep Why SMEs shouldn’t do their own accounting
Small business often fall into the trap of believing that they’re better off doing their own accounting than outsourcing to a specialist. It’s easy to understand why, if it’s just you and a few employees then surely it’s quicker and easier to just do it yourself, right?
Well, wrong actually. SMEs are rarely advised to consider doing their own accounting, and when you think about it the reasons become obvious.
Time is invaluable
When you’re starting or have just started your business, every minute of the day is invaluable. It’s important that you focus as much of your energy as possible building your brand, developing your business, and serving your customers. Anything that takes you away from being able to do this, is something that is in your interest to avoid if at all possible.
Accounting can be a laborious and time consuming process. You need to keep and maintain your records and set aside time every day, or every other day, to ensure your accounting is up to date and accurate. If you find a mistake, you need to identify where the mistake happened and then invest more time chasing up what went wrong.
Businesses often feel that accounting themselves is going to be easier and faster. And it is, in the ideal world, but the truth is we don’t live in the ideal world. Businesses often fail to take into account the reality of the time and effort investment they’ll need to make, even if the business is only operated by one person.
Lack of specialist knowledge
Not only will you have to deal with the accounting that deals with your sales and the day to day running of your business, you’ll also need to keep abreast of any legislative changes that come into place and how they affect your business going forward.
Failure to understand something could result in you making an accounting error, and while it’s unlikely to bring the world crashing around your feet it’s going to cost you valuable time getting it rectified and repaid. When you consider this, outsourcing accountancy becomes a wiser investment.