3 Reasons You Shouldn’t Do Your Small Business Accounting Yourself

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Tempted to tackle accounting matters solo? Read on to see why you really shouldn’t. [[{“value”:”

It can take several years (or longer) for a new business to turn profitable. So if you recently opened a small business, you may be inclined to do what you can to cut costs. That could mean taking on as many tasks as possible to avoid having to outsource them or bring in professionals.

One task you may feel equipped to handle is accounting. With the right accounting software to guide you along, you may have confidence in your ability to manage your company’s books without having to hire someone with that background to do it for you.

And let’s be honest — it’s really good to have a pulse on your company’s finances. So there can be a benefit to handling your small business accounting yourself.

But it’s also important to recognize the pitfalls you might encounter if you do your own business accounting. Here are three reasons you may want to assign that task to someone else.

1. You risk making big mistakes without the proper training

If you don’t have experience in small business accounting and you’ve never been trained in that area, then handling your own books could result in a number of problematic mistakes on your part. These could include:

Failing to run payroll on time and forcing your entire staff to miss bills as they wait for their paychecks to hit their bank accountsFailing to pay credit card bills on time and getting hit with interest and penaltiesFailing to comply with tax rules and being fined as a resultOverpaying or underpaying employees (such as in the context of bonuses, commissions, or overtime) and having to reconcile the numbers after the fact

Hiring someone to do your small business accounting could mean avoiding these and other blunders that could prove to be a real headache.

2. It can be extremely time-consuming

Small business accounting usually isn’t a 10-minute task each week. Rather, it can be a full-time job by itself.

You know what else is a full-time job? Running a business. So if you take on the job of accounting, you may add stress to your plate that you don’t need.

A recent Capital One survey found that many small business owners today are suffering from stress, anxiety, and burnout. Why pile onto that by forcing yourself to tackle another tough task?

3. It could take you away from other tasks that only you, as the business owner, are equipped to handle

When you own a business, there are certain tasks that will inevitably fall on you, and only you. You may, for example, have to review every contract that comes in and negotiate every vendor agreement.

The more time you spend doing accounting work, the less time you might have for the most important tasks on your plate. While your goal in doing your own bookkeeping may be to save money, if taking on that work means missing out on other money-making opportunities, then you’re not really doing your business any favors.

It’s important to recognize that small business owners can’t do it all. And accounting is one job you may want to assign to someone else — someone with the background needed to avoid mistakes and the capacity to dedicate enough time to the task at hand.

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