An accounting and bookkeeping service is seen as an unnecessary expense when you’re just starting out your business. This is understandable given how little bookkeeping you need to do as a small business, and with the prevalence of powerful cloud-based accounting tools, you’d be hard-pressed to find a good reason to hire an accountant in the current age.
However, there will likely come a point when hiring an accountant seems like the most logical decision to make in order to facilitate growth. So in this post, we’re going to explain how long you should be able to last without needing an accountant.
How long do you spend on your finances?
Start by recording how much time you spend doing your finances each week. If you feel that these hours could be better spent on growing your business, then it might be a good opportunity to hire an accountant. However, if it’s just 2-3 hours per week, then you need to ask yourself how much work you can realistically do in those 2-3 hours compared to the money you save by not hiring an accountant.
Are you out of your league when managing your finances?
If you have absolutely no clue on certain financial aspects such as doing your taxes, then you might find it incredibly difficult to actually bookkeep on your own. While the time spent doing it might still be short enough to not need an accountant, you do need to consider how much time it’ll take to learn how to do your own taxes and navigate the legal system that surrounds it.
If you’re adamant about doing your own finances, then you’re going to need the help of advanced accounting tools available today. We’ve added an infographic below that showcases some of the most important and useful accounting tools for the digital age that you should invest in.
Infographic: University of Alabama Birmingham