Why Setting Up Your Initial Books Is A Bad Idea
DIY or do-it-yourself activities are a great test of creativity and an excellent opportunity to save a little money. Doing things yourself can also be therapeutic or fun. However, as the DIY craze catches on, many believe just by watching a couple of instructional videos, all tasks can be completed swiftly and economically as a DIY, even the sometimes complicated task of setting up the books for a new business venture.
In reality, if you’re planning on starting a business and hope to create a viable bookkeeping system on your own, you have a lot to consider before making the commitment. To give you an idea of how bad things could get, the experts at ALL-PRO Business & Bookkeeping Corp. have covered the consequences of attempting a DIY setup of your business’s books and accounts.
1. Errors are easy to make
Attempting to keep track of all transactions, not knowing where things go, and posting the wrong opening balance without in-depth knowledge and an up-to-date understanding of the process and norms leave you vulnerable to mistakes that could have been easily avoided. For example, failing to track reimbursable expenses, neglecting to save receipts, and failing to correctly classify employees make bookkeeping more complicated than it needs to be. The other thing with self-bookkeeping and accounting is that we often only realize our error when it’s too late and the business is already suffering.
2. Mistakes can be costly
When dealing with personal or business financial records, it goes without saying that mistakes will have financial implications. On the flip side, following the proper process and not being careless can save you thousands of dollars in taxes and ensure your business succeeds and prospers. DIY bookkeeping and manual accounting systems allow for data entry errors, errors of omission, and errors of commission.
Do things right - Hire a professional
While you do not necessarily need a certificate to be a bookkeeper, DIY bookkeeping solutions should be avoided unless you have significant knowledge of the process and an in-depth understanding of accounting principles. Additionally, relying on yourself to do all bookkeeping tasks without messing up requires you to be detail-oriented, understand personal and business financial management, and be somewhat computer savvy to work your way through the system.
Simply put, choosing competent bookkeeping professionals to handle your accounts and set up your books brings a level of professional aptitude and gives your business a boost that you cannot afford to miss.
If you are concerned about the expense hiring a bookkeeper will have, then be reassured. The cost of employing an experienced bookkeeper usually depends on the job’s complexity and the professional’s competencies. However, if budget is a priority, you should shop around for quotes and find professional services that you can easily afford.
For reliable Bookkeepers in Calgary, Alberta, reach out to the expert at ALL-PRO Business & Bookkeeping Corp.. Established in 2006, we are a Calgary-based bookkeeping firm founded by Valerie Mellof. Valerie is a bookkeeping professional with over twenty-five years of experience who provides services for entrepreneurs and small to medium-sized business owners in multiple fields.
Get in touch with us today!