You’re a content creator. A designer. A small business owner. A painter. You’re anything but an accountant.
So understandably, traversing the world of handling your own finances might be more than just a short hurdle for you. Despite this realization, you feel perfectly capable of handling the situation on your own — and rightfully so with dozens of streamlined accounting solutions why wouldn’t you, right?
You are not alone.
A lot of newer entrepreneurs tend to lean this way and unfortunately find themselves in pitfalls because of it.
The National Small Business Association (NSBA) made public a report towards the later end of the Winter in 2014 that determined 40 percent of small business owners spent more than 100 hours a year managing their books. While accounting systems make it easy for us to RECORD data, they still require a lot of manual reconciliation and oversight.
With that in mind, before you grab the reigns and attempt to handle your accounting duties on your own, you should really acknowledge two major considerations:
(1) To start, your tax preparation demands your entire attention. This can be a bit tricky if your business is hectic or you’re juggling multiple projects. Due to the inherent complex nature of filing, the margin of error for those who aren’t well versed in the process is staggeringly high. It’s rather common to make a mistake if you’re trudging through it and even more so if it’s only commanding part of your focus. The fines for these mistakes can be quite substantial to the point that hiring an accountant is often the cheaper alternative in the bigger picture anyway, which leads to our next consideration.
(2) In the grander scheme, by doing your accounting you’re depriving your business the opportunity of having a professional, which could do a more accurate job and nullify the fine issue described above — but also save you money in the long run simply by offering a more efficient approach. Sometimes it’s worth the cost to hire an accountant who has the knowledge of tax and finance laws who can help you keep everything straight and get you paid on time. This also clears your own time so that you can put your attention back on running the business - a luxury that you would only partially have if you were sinking in hours doing your accounting yourself.
Bottom line, you need to focus on your business operations, so why let accounting hold you back when a professional is just a hire away.