As a small business owner, you probably have too much to do trying to grow your company, and proper accounting is just another headache that you deal with. Hiring an experienced, savvy accountant for many startups might be an issue, especially during the initial stages. But, your accounts are essential, and you need to be very cautious, more so when starting out. Below, we highlight why your DIY bookkeeping is bad for your business, and of course, we will give you a better and cheaper option.
Inaccurate Bookkeeping
As a small business owner, you might opt to do your bookkeeping. This means lots and lots of paperwork month in month out. Seeing that you are very busy, you will likely forget essential things like updating your books regularly. You might be late on filing your invoices or even make some mistakes when doing your payroll. Of course, this won't seem too bad in the beginning. Still, going forward, it will result in miscalculation of profits, thus causing a loss in your business; you will have issues with your vendors, filing your taxes will be a huge fuss, and this might attract the attention of KRA, leaving you vulnerable to audits and penalties.
Inaccurate bookkeeping fails to give you a proper overview of your financials, leading to business decisions that hamper growth.
Last-Minute Tasks And Missing Deadlines
Small business owners have so much to do that regular bookkeeping might be impossible. Excel sheets or even pen and paper are the most preferred routes, and these methods are not too accurate as there has been an accumulation of records and invoices causing mistakes. Therefore one is left unable to claim their expenses. Without correct records, it takes longer to organize and send invoices, thus increasing your invoicing cycle.
Lack of proper expertise
Proper accounting takes time and knowledge, and most likely, you are not a pro accountant or an expert. Even if you took accounting in college, a lot has changed significantly with the recent tax revision. Lack of proper knowledge will cost you a lot, especially since you are dealing with financials, and that is a mistake you cannot afford to make.
Lack of time
When starting, most business owners prefer DIY bookkeeping as they believe it's much more cost-effective than using software like Quickbooks online. However, Time is money, especially for small businesses; you shouldn’t be focused on doing some of these things yourself. Focus on what you are good at and maximize on that.
It Will Cost You More In The Long Run
There is a common misconception that DIY bookkeeping will save you money. The reality is maybe at. First, it might, but going forward, it opens you up to many financial errors, tax errors, hefty penalties, and cash flow problems, all of which can be avoided. Taking control of your business means also being on toes with your finances and everything around that.
So what is the solution
Quickbooks online helps you track all your accounts from one place. It ensures everything is in its proper place, so you’ll always have what you need when you need it, so your books are always accurate and up to date. It ensures you can Claim every entitlement at tax time with your expense receipts stored and sorted in QuickBooks. And also offer support at any time, so you do not have to worry about running into any mishaps.
Reach out to us today for a 30-day free trial on the Quickbooks online. Call us on +254 713 466 848