Right now, the whole DIY thing is a huge trend. People are making their own farm house tables, home décor, skin care products, and accounting… wait? that sounds out of place. That’s because it is, you shouldn’t try to do your own accounting if you have no experience with it. While you might be able to get away with making your own home décor and skin care products, accounting is something you might want to leave to the professionals. So many business owners make the mistake of trying to do their own accounting to save money, and usually end up losing more money this way. I’m going to touch on a few reasons as to why you might not want to try to tackle your business’s finances alone.
1. Keeping up on BookkeepingThis may seem like a task you can kind of just puuush to the side, but if you do that you will quickly fall behind. Most of the time with small businesses, when something is pushed to the side it is forgotten about and keeps getting pushed further and further back because it’s not as “important” as the current task.Not having up-to-date books will cause:
- Loss of profits, if unpaid invoices are left unnoticed
- Ruined relationships with suppliers because of unpaid invoices, which leads to bad credit rating
- More work come tax season
2. Relying too Heavily on TechnologyThe problem with trusting accounting technology, is you think it will do all the work for you. However, you still have to make that software work and know how to properly use it. Also, while one form of technology might work for one company doesn’t mean it will work for you and your company. I recommend doing some research first to figure out what will be the best fit for you and your needs.
3. Doing Tasks Last MinuteMany business owners think of accounting more as a chore and not so much part of their job. Since it’s not a top of mind priority, important deadlines are often missed and forgotten about. When accountants wait until last minute it causes:
- Missed deadlines – which leads to paying more money
- Mathematical mistakes – which takes time to fix and cost money
- No planning for the future – which leads to (you guessed it) paying more money