Some business owners would like to save money by having their front desk attendant or some hourly wage employee do their accounting services for them. Most of the time, this is a bad idea. There are a lot of things that you could not possibly teach an hourly employee unless they took the time and took an accounting class. That’s why accountants go to school for accounting, it’s not that easy.
Debits and Credits
It seems like the idea of debits and credits is easy enough but when it starts getting into balance sheets and all of the different journals you have to fill out, that’s when things start to get tricky. Even some of the best accountants will miss a number here and there. It doesn’t sound like being one number off can really make a difference but that’s where you be wrong. Almost every principle in accounting relies off another one. Meaning that if one number is off, every number will be off. Imagine ordering supplies or inventory and the amounts that you thought you needed are completely wrong. You either end up with too much or not enough in the worst case.
Clear Headed Decision Making
IF you are making business decisions on what to do with your money or plan on making a withdrawal from the business account, you better make sure that your numbers are right or you might be putting yourself in the whole. Knowing where you money is at all time is almost detrimental in making decisions on where your money is going next. An accountant would know what the books are looking like at all times and would even be able to make future predictions based on these numbers. They would be able to tell you if you are making a good business decision or not.
It doesn’t seem like it would take very long to do your accounting but in all actuality it is a full time job. Some companies will hire an inside specialist to do the work but most companies outsource. You can hire a company online that will manage your entire business and they make it easy to upload receipts, bills, and other forms of payment receipts. This will save you time and money because you are not paying someone when they are not working. If you have an inside accountant there will be time when they are not working and you are still paying them. Save yourself the money and outsource.