Unless you're an accountant or a fan of working with numbers, accounting probably isn't your favorite job if you're a freelancer or run a small business. But doing your own bookkeeping can give you insight into what you need to grow, avoid making mistakes, and understand the bottom line of your business. That is why we have listed these 5 reasons why you should consider doing the bookkeeping yourself.
Accounting is not as difficult as you may think. Although accountants and bookkeepers are highly skilled, with an accounting program it is very easy to do if you have no experience with bookkeeping. An accounting program not only helps you to complete your accounting, it also gives you an overview and insight at all times. This way you always know how your company is doing.
Doing your own bookkeeping saves you money in several ways, especially if you use an all-in-one bookkeeping program. You don't have to spend money on an invoice program, financial spreadsheets and more because they are part of the accounting program. In addition, you pay less for the bookkeeping because you do most of it yourself. And if you do need an accountant or bookkeeper for the VAT return, then the bookkeeping is already in order and it costs them less time and therefore less money for you.
Because you have a hands-on view of your finances, you can take action at all times to prevent financial problems and plan for profit growth. After all, you can monitor your company's financial performance in real time. When someone else does your bookkeeping for you, you often don't see it until tax time and then it's too late. You can see the financial position of your company at a glance… whenever you want.
By creating invoices, entering expenses and payments, and viewing financial statistics, you can quickly gain insight into your company's finances. You see income and expenses, cash flow, revenue peaks and troughs over the year, customer value and more. The more you know about the details of your business, the easier it becomes to operate efficiently or budget for financial growth.
When it comes time to file your VAT return, you'll be very glad you did your own bookkeeping. You can rest assured that your business complies with tax regulations, that records are accurate and complete, and that all expenses are recorded so that you can take maximum advantage of deductions.
