This is the dilemma of every business owner. Should I do my book myself? Should I contract a professional bookkeeper? Should I get a part-time employee to handle the job? These are set of questions that run through the mind of business owners. Most times small business owners choose the option of doing the book themselves.
Here are the pros and cons of DIY accounting.
Pro: DIY accounting saves you money because you are not paying anyone to render the service. You only need to sacrifice few nights or the weekend to get it done. The bottom line still remains it is cheaper.
Pro: DIY accounting allows you file the numbers and paperwork any way you want it. You are in control so you file them where you can easily find them again.
Pro: nobody controls you when you do the books yourself. DIY accounting means you are the boss. It also keeps you in charge and control of every facet of the business (despite the fact that you don’t know the complex the tax rules and the effect, you will have to wing it).
Con: doing the book is not the best skillset for most small business people except if you are an accountant. If the case is otherwise, it’s likely you
1) make mistake in the book
2)put off doing the book
3) get the management of business finances wrong
4) fail to file all the required paperwork with the right authorities
Con:You are at risk of getting a call from the CRA. This is likely to happen because only an expert can manage business finances and you may get things wrong.
Getting a call from CRA will cost you time, stress and cash. You must have heard of adverts where tax debt brokers offers to render their service (help) to companies that have gotten themselves under the mountain of debt they owe Canada Revenue.
Those companies made the mistake of not contacting a professional accountant to provide a company health check. Avoid such mistakes because it is detrimental to the growth and progress of the business.
Con: Calculating GST/HST takes the precious time that could be directed towards the growth of the business or time you’d probably spend golfing, fishing or doing other recreational activities. Remember it is important to respect your time worth and mental health worth.
Con: your business may not grow at the projected pace because you spend the time that is meant for business marketing and making money with your calculator and complicated excel spreadsheet.
Con: You are not making wise use of your money. If you are not an expert, hire an expert not only because you there are experts but because they can also save you money and make you money by advising you on financial management.
Con: you are stressing you brain and eyes going sleepless nights to get the books done. If it does not affect your business, it is likely to affect your family.
The bottom line is that you could DIY your company’s financial management, but it is not effective and efficient for any serious minded business owner that wants to grow his brand or make money.