Bookkeeping – pros and cons of doing your own

Bookkeeping is probably the least favourite task of most business owners. It can be time-consuming and doesn’t produce any profit. Using a bookkeeper can be beneficial, but there are benefits to doing it yourself too. 

Pros 

• When you start you may find the process simple and interesting but doing a similar task every day can be distracting. This often leads to mistakes that could cost the business money, 
• When you don’t have to worry about organising your books, you can spend more time and effort on the main activities of your business. 
• A bookkeeper can give you advice on how you can manage your budget. Ultimately allowing   the business to run more cost efficiently. For example, suggest ways to cut running costs and provide insight into your spending. 
• It can be very easy to make mistakes which could turn into a major problem when the time comes to filing your year-end accounts and tax returns. 

Cons 

• The obvious advantage of doing your bookkeeping is that you save on the cost to the business. If you are a small set up bookkeeping is not too complex at this stage.  
• Because you, or someone working with you, are the only ones doing the accounts, you have total control over your finances. Nothing needs to be discussed with a third party before making decisions. 
• If you want to alter the way you do your accounts, this is made easier if no one else is involved. Any processes can be changed easily and quickly. 
• Doing the accounts yourself you are aware of the financial health of your business  

So what next?

Although it’s your decision as to whether to hire a bookkeeper, if not now, then in the future a professional bookkeeper is likely worth the investment. Often, the cost of a bookkeeper is more effective than the time you would be spending on your accounting. Especially when you consider the money they can help you save. 

As a business owner, time doing the tasks that bring the most value to your business is probably the better investment. 

If you think you need some help or would like to discuss your options further get in touch – it won’t cost you anything. 

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