When you are in a small business, it’s only natural to want to do the numbers yourself. Nobody needs another monthly bill, and there is more easy-to-use accounting software than ever. However, when you do it yourself, accounting can take time out of your life with the stress that goes along with it, plus some costly mistakes.
How do you determine when to hire an accountant and when to DIY?
DIY accounting is possible if done well.
If the following are true, doing it yourself may be a good fit:
Your business is small by definition (a few invoices and only a few expenses)
You are organised and keep accurate records
You’re comfortable learning the basics
You have some time each week to hit it.
Pros of DIY:
Lower cost in the short term
You would know what your numbers are day by day
You can proceed fast in place of relying on someone.
Common DIY downsides:
When you’re busy with projects and tasks, it is easy to fall behind
Overlooked eligible expenses or misunderstood what’s payable
Minor mistakes can lead to major year-end problems.
What does your accountant do and get paid for?
A good one helps you:
Stay compliant and meet deadlines
Put together a basic bookkeeping system
Know what you are and aren’t eligible to claim
Plan for tax bills
Make decisions with clearer numbers.
Less stress and fewer surprises
Greater certainty that it was done right
Structure.
Potential downsides:
Ongoing cost
You still need to keep good records (they can’t magic away missing receipts). For Worcester Accountants, contact https://www.randall-payne.co.uk/services/accountancy/worcester-accountants
A simple decision checklist
DIY is an excellent option if you can say yes to most of the following:
Bookkeeping (get this updated weekly, too)
You know what a business expense is and which are not
You’re happy to take responsibility for deadlines
Your business setup is straightforward.
Consider an accountant if:
You understand your accounts, but you are far behind
You have (or must be registered for) VAT
If you are hiring staff or paying yourself in different ways
You want to minimise tax risk and admin effort.
A relevant point is that you can prepare your own accounting, but only if you have the time and systems to ensure it is kept up-to-date. Accountants can be expensive, but if you have scales of growth, VAT to deal with, or are chronically playing catch-up, then an accountant frequently is worth their weight in time saved and errors avoided.