Unlike the laws of thermodynamics, no automatic rules of the universe compel you to appoint an accountant. However, scrimping on accounting fees is a recipe for ultimately encountering more expensive operations rather than cost cutting. Entrepreneurs who conduct all of their accounting by themselves soon discover that it entails more problematic situations than they anticipated.
Becoming a do-it-yourself accountant necessitates having enough time away from the demands of maintaining a growing business to assure that every transaction is correctly recorded in accounts created in the required format with no ambiguity regarding proper tax treatment of any item.
Maybe this doesn’t seem overwhelming because you’ve heard that software does everything. One little problem confronting you is that computer programs only process the input you select. Do you really have the time for learning about tax classifications and account categories? Can you easily discover errors and make adjusting journal entries? Do you know how to record liabilities incurred to purchase new equipment? Can you navigate tax software for handling depreciation and asset sales? Do you know how to prepare payroll correctly? Could you handle a tax investigation?
These are just a few of the questions to ask before becoming a do-it-yourselfer in accounting. If you are not 100 percent sure about any of these matters, hiring an accounting expert is your best choice. Your mistakes will cost more in the long run than the fees for an accountant. Plus, you will earn more money for your business by focusing your efforts on sales and management rather than accounting.
The Finance Writer 