DIY Accounting: Pros and Cons

Accounting goes hand in hand when owning or operating a business. Some may cut the costs and absorb this task by doing it themselves while others see a benefit in hiring someone else to do it for them. There’s no total right or wrong answer and everyone will have different pros and cons. These are just some of the basic things to think about when deciding who will handle the books.

Pros

Saves money: Doing the books yourself saves so much money as opposed to hiring someone else to do all this for you. If you have experience in doing it or filing taxes already why wouldn’t you start by being the accountant yourself?
File any way you want: You have your choice of what software you prefer and how you want everything filed and organized.
Understanding your business: You are always in the know of what is going on and you get to understand your business on a whole other level. By being able to see more of the ins and outs you have the benefit to…
Make decisions sooner rather than later: If you see something is wrong, the error can be corrected right away. If profits are either going up or down you can adjust accordingly to what you see as a higher priority.

Cons

Errors: If you aren’t knowledgeable about accounting it may be easier to make mistakes and there’s no one to catch your errors. Not knowing the correct tax forms or the amount to pay will cost you.
Easier to put off: Since you are doing them, it’s easier to make them lower priorities. Putting off doing the books may cost you if they’re not being filed or paid on time.
Failure to file the right paperwork: Lack of knowledge or time could result in filing the incorrect paperwork with the right people. A wrong form or adding up the wrong lines will cost you both time and money.
It’s time-consuming: Besides doing everything you already do for your business, you have to put the time in to make sure all bookkeeping is done accurately.
It’s costly: Time is money; by learning the software and doing the books yourself costs you time away from other projects and tasks. Even though you save money by not hiring someone else it will still cost you with time.

Whether you choose to DIY with accounting or hire someone to do them for you, it’s always wise to research and see what works best for you. There is no total right or wrong answer, it all depends on what you know and what you are capable of and/or willing to take on.