Entrepreneurs usually so many things to do by themselves because of running their own companies. It could be doing sales and marketing, bookkeeping, purchasing, managing employees, and other administration works. Most entrepreneurs do their bookkeeping by themselves without accountants. It seems it saves money to do bookkeeping by themselves, but is it true it saves their money? What are the benefits to have an accountant doing the bookkeeping for entrepreneurs?
Here are the negative sides of doing bookkeeping by yourselves without an accountant:
1. You may do many mistakes on your tax filing. It means you may pay taxes higher than you need to pay because you don’t understand about tax very well compared to an accountant.
2. You may often collect your account payable late because nobody taking care of it specifically.
3. You can get problems with the government because you file your tax mistakenly.
4. You can get fined because of late tax filing.
5. You may spend many long hours correcting mistakes on your bookkeeping because you don’t understand accounting very well.
6. You have difficulties to make business decisions because you don’t have reliable financial reports.
If you often have those experiences above, it is the time you should hire an accountant for your business. These are the reasons for and benefits of having an accountant for your business:
1. You can focus on your core business process.
If you have an accountant for your business, you do not need to spend many long hours doing bookkeeping by yourself anymore. It means you can save time and focus more on your core business process. You can focus more on generating more revenues, products or services delivered to your customers, and improving your products or services quality.
2. Your tax filing is taken care very well and on time.
Your accountant is educated on tax filing, that is why an accountant can do better tax filing than you. You can avoid many mistakes and late tax filing because your accountant can do it for you better than you do it by yourself.
3. You can improve your invoicing and cash flow.
Your accountant can always monitor and manage your account payable and cash flow for you. It means you can avoid the late invoicing problem and improve your cash flow.
4. You can make better and faster decisions.
If you have an accountant for your business, you will get better, on time, and accurate periodical financial reports of your business. It means you have a better information source of your business to make better and faster business decisions.
5. You can increase your profitability.
Since you have an accountant doing bookkeeping for your business, you don’t need to spend many long hours doing bookkeeping by yourself every day. It means you can focus yourself to increase revenue and profit of your business.
Having an accountant doing bookkeeping for your business is a good business decision. You can avoid any tax problems, and focus more on your core business process.