Dangers of Do-It-Yourself Accounting
In an effort to save time and money, many small businesses choose to do a lot of work in-house. One area where many businesses decide to take on the DIY attitude is with accounting. However, small business owners and staff are pulled in a lot of different directions and it can be difficult to make time to pay full attention to their accounting processes. What is an attempt to save money might end up costing a lot more than what they originally bargained for.
Accounting is more than plugging numbers into software. In order to get accurate information from your reports, you need to make sure you’re plugging in correct and complete data to begin with. Accounting is like a machine with a dozens of tiny pieces. In order for the machine to run smoothly, there should be much care and detail given to each part. Lack of time and familiarity with the accounting process are big road blocks when it comes to DIY accounting.
If businesses aren’t careful, placing inaccurate information from cash paid out, bank charges, payroll timesheet, and balancing checkbooks can lead to a big mess when it comes time to pull the information into financial statements. These inaccuracies are purely accidental but if they aren't fixed right away, they can lead to huge headaches.
It’s not to say that small companies aren’t capable of doing their own accounting work, many can and with little to no problems. In order to be successful, you need to dedicate time and attention to accounting processes. One important thing to remember is that it is ok to get help. Whether you are looking for someone to take care of your accounting or just have a few questions about financial statement preparation and process, don’t be afraid to ask for help. Taking the time to get help right away saves you from a mess down the road.
We’re happy to help in any way we can. We are here to help answer your accounting questions with our new QuickCall service and we offer a variety of accounting services.