Why You Should Hire an Accountant to Handle All Your Financials Needs

Is doing your tax yourself a good idea?

If you're and adult you can do most things for yourself. Cooking, cleaning, getting from one place to another, deciding what you wear, even gardening and renovating. Sometimes we outsource these tasks, when we hire a cleaner or take a taxi or go to a restaurant, but for the most part, these are things we feel comfortable doing on our own.

There are some things you could never do on your own. Invasive surgery or dental work, for example. I am of the opinion accounting should go on that list too. If you have an accounting background and a thorough understanding of the tax system, doing your own accounting work might actually be a good idea. You'll probably save yourself time and money if this is the case. If, however, your skills lie elsewhere and you are just bing brave and ambitious in thinking that you'll take care of the accounts yourself, then think again. First of all, accounting is very labour intensive. It takes time. A really long time. Is that the best way for you to spend your time? If an accountant can do it three times faster than you can, then it's not going to save you any money at all to spend a full-time week sweating over the receipts of the last financial year. Secondly, if you lack experience in bookkeeping and you make a mistake in your finances, it could cost you a lot of money, perhaps in a fine from the tax department, or perhaps in a missed opportunity. You could be paying for your mistakes for years to come. There is a chance you will do everything right the first time and learn as you go, but it's unlikely. If you really want to keep your tax in-house, consider some training for you or an employee by a firm like Teamwork Accounting.

Ivy Delfin is a copywriter working with Teamwork Accounting specialists in long-term financial security and reducing stress. When Ivy's not writing content she enjoys cooking and swimming.

Outsourced Bookkeeping for Small Businesses

Having good accounting is one of the most important details to consider for any small or medium-sized business that is looking to be successful. However, the legwork of bookkeeping is more often than not a full-time job. Many small businesses and start-ups simply do not have the manpower or the expertise to perform proper bookkeeping and keep up with the day-to-day operations of a business.
Outsourcing bookkeeping is one of the most effective ways for this type of business to increase its productivity as well as save money. Because proper outsourcing is such an important part of the success of any small business, outsourcing the accounting functions of a business takes on a special significance at the beginning of the life of the business.

Nowadays there are many accounting companies that offer outsourced services including bookkeeping, payroll and management accounts. Many of these will send a staff member to work on site for a day or two each week so you can really get the best of both worlds in this respect.
Below are just a few of the reasons that outsourcing bookkeeping can save a great deal of money for a small or medium-sized business.


1. The man-hours of employees will be directed towards their specialty rather than towards accounting.

Regardless of the industry that a company is in, each and every sale can require more paperwork as actual salesmanship. If you are a business on a budget, you must ask yourself this question: Would you rather have the limited hours of your employees focused on making more sales or on dealing with the bureaucracy of past sales?

Most business owners would answer that they would rather their employees’ focus on making sales and providing customer service to their current customer base. For this reason, leaving the paperwork of bookkeeping to a reputable outside professional will save the expense of man-hours.
 

2. A reputable bookkeeping professional or company will be able to accomplish the same amount of work in a shorter amount of time.

Outsourcing is as essential as delegation because of the idea of specialization in a small business. In order for small business to function at its most effective, each and every person should be doing what they are best at. When everyone is focusing on their specialty rather than trying to wear 15 different hats, all processes flow more smoothly.
Because a small business usually will not have an in-house bookkeeping professional, the outsourcing of bookkeeping is a form of delegation. By delegating this responsibility to an entity with a much more effective procedure, you save yourself the expense of wasted time having to learn new systems, software programs and regulations.

3. Outsourcing your bookkeeping is a much more effective way to organize finances for Customs and Revenue.

The Canadian Revenue Agency (or the IRS for that matter) is much more likely to accept the opinion of a reputable bookkeeping service than an in-house company accounting assessment. A reputable professional bookkeeping company will be able to organize records in a way that they will be able to understand. In short, bookkeeping professionals speak the language of the CRA. Most business owners do not, nor do they have the time to learn it.
Saving money on taxes and saving time on potential audits one of the biggest ways to save money as a small business owner. A great majority of small businesses that fail do so under the weight of a tax burden along with other expenses.

4. Outsourcing your bookkeeping gives you someone to bounce accounting ideas off.

There are many ways to save money that professionals are aware of which simply do not occur to business owners. Saving money by knowing the rules and regulations of accounting procedures that are generally accepted is a full-time job in and of itself. However, outsourcing the bookkeeping of a company can open up the world of tax shields and deductions that would otherwise be unavailable to a small business.

 

Dave Dunne is a freelance writer who writes on a wide variety of topics including business, online marketing and technology. This article was written on behalf of Guardian Management Accounting.