Most entrepreneurs do their own book keeping and accounting out of necessity. It’s a cost-effective solution. Starting a business can be costly and entrepreneurs with limited budget have to save their cash whenever possible.
Obviously, most people opt for the do-it-yourself (DIY) method as it seems the least expensive way to handle all business records and accounting. However, for those who have little or no accounting experience, the DIY method might not always be the most effective way.
There comes a time when entrepreneurs, usually those who are just starting out, wonder whether or not it may be wise to hire a professional accountant. Should you hire a professional accountant?
If yes, are the pros and cons of hiring a professional accountant? How much money you will have to spend on hiring a professional accountant to maintain accounting records? Keep reading!
1. Benefit vs. Cost – Small business owners usually get by doing their accounting on their own. Doing one’s own accounting could be rewarding at first as long as they understand the basics of accounting principles, have the drive to learn more, and have ample time to do so.
Yes, there exist numbers of inexpensive accounting programs that can assist you in keeping records and invoices in an organized manner so that you can find them easily whenever you require them.
But as small business later grows, keeping track of all those accounting records, customer invoices, and other book keeping become unmanageable and complex, even more in a firm having a complex legal structure.
When is the right time?
If business entrepreneurs find themselves spending way too much time maintaining accounting and less time focusing on their work to keep their business running, then it’s probably the right time to look for a professional accountant.
The Pros of Hiring a Professional Accountant for Your Business
1. Reclaim your time – The benefit of hiring a professional accountant for you business is that they’ll help you (a busy entrepreneur) reclaim your time so that you can spend it instead on performing tasks more centered towards your business goals.
2. Know-how – As far as professional accountant is concerned, they are shrewd, know what they’re doing, have an eye for detail and years of experience, and most importantly, are specialized to spot potential threats in advance.
3. Get a piece of mind – Hiring a professional accountant for your business will give you a peace of mind, knowing that you never have to worry about making another mathematical error, unintentionally attracting the inspection of the IRS after misinterpreting tax laws or filling forms incorrect, or draining extra money by missing out on tax credits and deductions.
Accounting mistakes can not only cost you money, but you may also face few legal charges in the future.
4. Make sound decisions – Many business entrepreneurs often have to rely on the expertise of their accountants for making sound dec
isions. Accountants have extensive track records and through experience come wisdom.
So, having a professional accounting by your side can be a valuable asset for your company, particularly when you are considering new business ventures, or making next major decisions.
When you work with a single accountant for a long period of time, they will have an opportunity to get familiar with your business’s profits, losses, assets, and liabilities. This acquaintance, combine with their financial know-how, places them in a completely unique position to give you relevant and sound fiscal advice.
What about the cost?
Well, if you ask us, cost is still one of the major barriers that stand between small business owners and a professional accountant. Their years of knowledge as well as time could be valuable, and that is why, they expect to be rightly paid for their services.
Although many startups do not really need to receive the professional accounting services immediately, however, as business grows entrepreneurs will eventually have to consider hiring them as they can save you tons of money, time, and effort in the long run.
Paul and Hype Page Co. is offering accounting services in Singapore for many startups as well as well-established firms who are looking for talented as well as experienced professional accountants.
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Categories: Accounting & Payroll Services in Singapore