Why Do you Need an Accountant or Bookkeeper?



The majority of business owners do not particularly enjoy accounting or bookkeeping. A lot

of the time, it can eat up into their personal time and they end up doing it late at night or

when they’d prefer to be spending time with their family.


Some people think that hiring an accountant is a luxury rather than a necessity, but in most

cases, it is vital for a business owner to have an accountant. Hiring an accountant or

bookkeeper is a business decision, and there are many benefits to it that will positively

affect your business. Investing in professionals can bring substantial returns.


Both accountants and bookkeepers have lots to offer, such as business advice, improved

cash flow and saving you time or money. They can take away the financial stress you may

have surrounding your business, allowing you more time to focus on the growth of your

business and the things that matter most to you.


Three Negatives Of DIY Accounting & Bookkeeping


There are a fair few negatives when it comes to DIY accounting and bookkeeping, but below

we discuss the most notable ones.


  1. An Overwhelming Workload – Business owners have a lot to do themselves as it is, and being responsible for the accounting and bookkeeping will add further pressure and will consume a large chunk of time.

  2. Inexperience – Being inexperienced and lacking confidence when it comes to accounting and bookkeeping can increase the risk of encountering problems, such as filing compliance paperwork late, books with mistakes and no reliable information that allows the business owner to make business decisions.

  3. Having To Find The Time – As we have briefly mentioned above, accounting and bookkeeping demand time. Business owners have very busy work schedules, and it is not ideal for this to suffer due to spending time on accounting or bookkeeping. Business owners need as much time as they can get, to focus on the parts of their business that are most important to them.


Since accountants and bookkeepers can take care of financial activities on behalf of

businesses, hiring an accountant or bookkeeper is a wise choice, especially if the

business owners’ time is strained.


The Benefits Of Getting An Accountant Or Bookkeeper


The benefits of using an accountant or bookkeeper are endless, so below we have pointed

out some main areas where they will help your business immediately.


The knowledge to make better decisions


Accountants and bookkeepers will always tell you how your business stands. The work that an accountant or bookkeeper will do for you will highlight short-term cash flow and long-term profitability, as well as allow you to see income and expenses as they happen.

Research conducted by the AVN for Accountants found that 80% of businesses fail in

the first 5 years, largely down to the business owners having little to no experience

in record keeping, paying taxes incorrectly and having limited knowledge of

financing.


In addition to this, accountants and bookkeepers provide a whole new wealth of

knowledge when it comes to working with your business. They also offer endless

support to your business and will give you advice at any time.


Tidying And Organising Your Books


As we have discussed previously, DIY bookkeeping can lead to data entry mistakes and late or lost documentation. Since accountants and bookkeepers have tons of practice in this field, they can neaten up your books one and for all.


It is also likely that they will set you up on a cloud accounting software, such as Xero,

which makes it so much simpler and quicker when it comes to recording income and

expenses, and also bookkeeping and accounting as a whole.


Improving your profitability


Both accountants and bookkeepers can help you to identify and remove any unnecessary costs, and also discover what drives the most profit in your business.


These are your key performance indicators (KPI), and when these improve, your

profit and revenue will too. KPIs also allow you to make informed decisions in your

business.


No More Missing Deadlines


Filing or paying taxes late can result in interest and penalties, however, once you have an accountant on your side you won’t miss any more deadlines. Any good accountant will do the necessary work in good time, meaning that tax filing will be a smooth and stressless process. You will no longer have to dread tax season.


Also, hiring an accountant can often reduce the amount of tax you must pay, such as

if you requested tax planning services from them at the start of the year. Putting this

strategy in place will help to keep more money in your business.


How To Get The Best Value From An Accountant Or Bookkeeper


When searching for an accountant or bookkeeper, we recommend choosing one that can

automate your bookkeeping using cloud accounting software. Using an accounting

the software will boost efficiency for both you and your accountant/bookkeeper, as it can

automatically import your businesses’ financial data, which means humans can be less

involved and more time will be saved for the both of you.


The Bottom Line


Hiring an accountant or bookkeeper is a business decision and one that will have a great

return. Thank you for reading this article and we hope it has been informative and

interesting to you.


If you are looking for an accountant, book a free consultation with us today. Here at

Suzanne Lock Business Services, we make your business, our business. We are so passionate

about helping businesses to grow and develop, and we have a personal touch that you

won’t find anywhere else.