The Disadvantages Of Doing Your Own Books
Posted On: 23/06/21 - 0

Here Are a Few Disadvantages Of Doing Your Business Books

As an entrepreneur, you may  think you are saving money by doing your own books in your business.  Many say that they can’t afford an accountant.  We say, you can’t afford to not have an accountant that specializes in business.  One of the most common tasks that small business owners do themselves is their own accounting, bookkeeping and payroll. But, it usually takes up a lot of time that you could have potentially used in core income generating activities. Also, the chances of making errors are high if you do the accounting yourself. Not that we doubt your ability to handle your own books but getting an accounting firm to do the job is always a better option. Here are a few disadvantages of doing your own books.

Common Errors in Accounting

Transactions, no matter how small cannot be omitted. Even when you take customer payments or buy inventory, you are constantly handling transactions. You need to record all of these transactions.  There are chances that you might miss out on recording something when there is a steady flow of transactions throughout the business day.  Missing out on such small details would be considered an error of omission. When you tend to handle all the business tasks on your own, it can be challenging to keep track of the  smallest details in accounting and bookkeeping.

Dealing with Late Filing Penalties

We have found in our office that business owners want to do their books when they have time.  This is done to save money.   However, when the decision is made to finally hire an accountant or bookkeeper, we see many different scenarios.  Books never got done, or if they were done, they were done incorrectly. .  This can result in costly late filing fees with accumulating interest.  If you hire an accountant that specializes in business, they will file on your behalf on time, every time.  This is dependent on the business owner getting all of their data into the accountant in a timely manner. This does save you money in the long run.  When we hear “we can’t afford an accountant”, our response is, if you do not file on time, you can’t afford those late filing penalties.

Failing to Backup Accounting Software

Finally, this is another disadvantage of doing your own books. With a professional accounting firm, they put their entire focus on the accounting function of their clients and the security of it.  With a reputable firm, data is backed up each evening and secured with many different types of technology that ensures total confidentiality. This data is password protected with offsite backup protection.  If you experience a crash on your own computer, we can help you to retrieve your  accounting/bookkeeping data with our systems.  We are always well-prepared to handle all kinds of situations.

These are just a few of the things that could potentially go wrong if you decide to do your own books . For peace of mind, call Cheryl @ 780-482-7297.

12203-107 Avenue.
Edmonton, Alberta.
T5M 1Y9

Call us:
780.482.7297