Hiring an Accountant a luxury?
it is not uncommon in this part of the world for entrepreneurs especially small businesses and startups to avoid hiring a professional accountant because;-
a. they don’t see the value – think hiring/outsourcing an accountant is luxury
b. they have a do-it-yourself attitude.
Cost of outsourcing an accountant.
An accountant will help you spent your time on your business. Mathematically, For example, if your business generates $ 500/- an hour and you spend at least 2 hours a week doing your accounts that is $ 1000 cost per week, for half of this you can outsource good professional accountant and that too for a month.
Why not do yourself?
Here are the few pitfalls of doing yourself.
Books are not up to date.
Often, even though you enjoy doing the bookkeeping yourself and you think it gives you more control, books are left to do late hence not updated regularly.
Documents are misplaced.
Piling the documents for a longer time runs the risk of losing them which may result in not accounting for some of the expenses and it is more problematic if those expenses were to charge to the customer.
Customer or project expenses are wrongly allocated.
If you are doing books after a week let us say, there is a risk you might forget which receipt is for which project hence the risk of misallocation to projects which can lead to delay in getting reimbursed from the customers.
If books are not updated regularly chances are you will not be ready to file a tax return in time, even if you rush for a last-minute catch up there is every chance you may miss accounting for some of the bills which means paying more tax then due.
Delay in invoicing
An invoice not sent in time will not be paid in time, delay in payment more than once could put your business in cash flow problems, cash flow problem not only delay wages & other payments but also halt business growth.
Doing books yourself brings many other problems such as no clear information available to assess profitability, unreconciled bank accounts, customer suppliers balances mismatching, no track of bills, etc.
Free your time, gain more power, get control & make informed decisions.
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