Accounting: Why You Shouldn’t Do It On Your Own

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Do you manage a startup or a small business? Have you ever been told to get an accountant to help you with the books and taxes? Perhaps you have repeatedly been given this advice, but you thought you might not need one now as the business is just starting to pick up. In fact, you may have thought about doing your bookkeeping and taxes in hopes that you will be able to save on costs. An accounting firm for a startup or small business, after all, can increase your expenses at a time when your financial resources are limited and you want to expand your business.

Seeking help from accounting firms in Edmonton like ATS Accounting and Tax Edmonton is always something that you have second thoughts about doing, but you know it’s the right thing to do for your business. The accounting and bookkeeping firms do not only look after your accounts now, but they also consider the stability of the company in the future. While it may seem as if you are saving money by not hiring an accounting firm to do the books and business taxes, the risk of whether you have done it right or not is always there.

Why a Startup or Small Business May Not Want to Hire an Accounting Firm

There could be a few reasons why a startup or small business might avoid hiring an accounting firm or outsourcing its accounting:

Cost: Accounting firms can be expensive to hire, and startups and small businesses may not have the financial resources to pay for their services.

Lack of Understanding: Some startup founders and small business owners may not fully understand the importance of accounting and the role of an accounting firm in helping their business.

DIY Mentality: Startup founders and small business owners, especially if it’s a family-run business, may be used to doing everything themselves and may think that they can handle their own accounting needs without the help of an accounting firm.

Limited Workload: In the early stages of a startup, there may not be enough accounting work to justify hiring an accounting firm to maintain its business records. The same could also be true for a small business as well.

It is vital, however, for startups and small businesses to recognize the value of having assistance from a local accounting firm. An accounting firm can provide valuable insights into your company’s financial health, help with tax planning and compliance, and offer strategic advice to help your business grow. Ultimately, the benefits of outsourcing your accounting can outweigh the costs, especially as your start-up or small business begins to scale and its accounting needs become more complex.

Before you give in to the idea of doing your accounting on your own, here are some risks that you might run into when you do it on your own:

Doing Your Own Accounting is a Distraction

As the owner of the business, your goal should be focused on making it grow, reaching out to new markets and developing its potential for growth and collaboration. How do you develop and grow a business efficiently when you have other pressing matters like accounting, bookkeeping, and taxes to look after? You don’t need the extra distractions at the moment, and that is what the company books are. Your divided attention may make you commit mistakes that you shouldn’t. If you do your marketing and your accounting, you’ll have too much on your plate. Choose one. Delegate the other to those who know better. Accounting can be a distraction that you don’t need.

Accounting Tasks will Consume your Time

Did you think that doing your business accounting won’t be as time-consuming? Many business owners who are just starting out may feel that they don’t have much to do considering that there is no steady cash flow yet. It’s easy to assume that until you have to do it. However, accounting tasks can demand a lot of your time. And if you fail to dedicate the time required, your accounting records may not be maintained properly to provide a clear picture of your business’s financial health. Your financial records will look out of order, and this could cause confusion that could mean losses for your business in the long run.

Accounting Requires Professional Knowledge that You May Not Have

Are you an accountant yourself? If you are and you have the time, then may be able to maintain your accounting books. But if you are not, it is best to delegate the task to someone who knows how to do it. Having a trusted and experienced accounting firm in Edmonton that can focus on your books and calculate your taxes means getting the help that you need to grow your business. At ATS Accounting and Tax Edmonton, our accounting team will make sure that your company will abide by both provincial and federal rules in terms and in processes to avoid delays in payment and mistakes in the methods of accounting.

In general, outsourcing your accounting can be a wise investment for your startup or small business, offering you cost savings, time savings, expertise, scalability, and reduced risk. By outsourcing your accounting, you can focus on core activities, can help grow your business, and achieve your financial goals with confidence. 

ATS Accounting and Tax Edmonton has an experienced team of financial advisors who will help you manage your business’s paperwork. Our team of dedicated accountants and bookkeepers knows the specific risks you may face and help ensure your business is protected.

Ready to get started? For more information about our accounting and tax services, book your free 15-minute consultation by calling us at 780-484-4006 or contacting us online.

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