With the introduction of inexpensive accounting software in the early 1990s, the subject of performing your own bookkeeping increased in popularity. For $64 million, Darcy Services Australia sold a tool to Intui. The company Intuit rebranded “You can save money by conducting your own bookkeeping.” Because of this USP, Intuit was able to take about 85% of the small company market. For a number of very good reasons, accountants were not lovers of this incredibly popular software package. It had significant security issues and was not a proper accounting tool, to start.
Second, it was encouraging newcomers to take on a critical step in the financial process. Finally, it severely hurt the accountants’ business by diverting business owners from their main objectives.
It would take a book to cover all the topics related to DIY bookkeeping in great depth. In order to provide the reader a chance to better comprehend this very important topic, I will attempt to cover as many of the key points here. In an effort to help businesses who may not have had the chance to properly make a decision, I welcome any inquiries and feedback on the topic.
It’s likely that you are one of the millions of small business owners who struggle with the challenge of “doing your own books” if you are reading this special study. Many people feel that hiring an outside bookkeeper or accountant to handle their personal financial affairs is akin to giving up their closet to an unfamiliar person. I think there is a legitimate privacy concern here. To be really honest, I knew I would be in business and wanted to be in charge of my own finances, which is one of the reasons I chose to become a CPA. The majority of business owners lack both that option and that skill set.
Because it may have an impact on the company’s ability to make money, the subject of DIY bookkeeping is of the utmost importance.
Numerous concerns need to be resolved, such as:
- The process of preparing tax returns using accounting data
- The accuracy of the generated financial information
- The accuracy of historical data in predicting future outcomes
- The control of cash flows
- The price of hiring a specialist
- Keeping your own books takes time, work, and patience.
- Addressing the growing auditing tendency of the government
- The time and energy spent studying bookkeeping
- The development of the bookkeeping procedures
As you can see, there are numerous issues to consider in order to make the best decision. By no means is this exhaustive. Numerous other legal, financial, and/or personal difficulties might be involved. The key takeaway from this is that keeping accurate accounts and records is extremely important for small businesses. It shouldn’t be decided how it will be done on a whim or by someone who is ill-informed. An individual running a tiny business is unaware of their ignorance. Certain duties and obligations come with running a business. When the books and records are called into question, ignorance is not a good enough excuse.