Posted on: 4 August 2022
If you're involved with a start-up business, you may be very focused on costs. You've got to get things moving as quickly as possible to generate income so that you can maintain a positive bank balance. In a situation like this, you may be tempted to do a lot of the "admin" work yourself, including bookkeeping. Yet why is this a bad idea and could end up costing you more than if you had simply outsourced in the first place?
1. Squandering Your Time
If you employ the services of a good business accountant, they will use a vast amount of knowledge and experience of how things work to handle your everyday bookkeeping and accounting. If you were to take this on yourself you may well be able to handle the basics but could inevitably spend longer than usual, especially when problems came up. When things get out of hand, you begin to question whether your time would be best spent on operational, marketing and other key areas instead.
2. Fumbling over Reconciliation
You may run into bigger issues when you try and reconcile your books with your bank account statement. Remember, the tax authority requires these to balance and if they don't, issues could materialise. If you file reports which don't match your paperwork, penalties could be in your future.
3. Mishandling Employees
In order to operate your business, you may need to take on employees. You certainly need to maintain adequate records here, with more than just weekly or monthly payments on the line. Remember, these employees are entitled to sickness or holiday pay and leave me a cure rate over time. Also got to focus on superannuation contributions and ensure that your PAYG reporting is top-notch.
4. Miscalculating GST
It doesn't take long for a business to grow to a point where it is responsible for GST. This can involve some tricky calculations and regulations that would make your eyes water. Again, if you're not on top of these areas you can easily make mistakes and may be eligible for backdated penalties.
The Benefits of Good Advice
All things considered, it's much better to hire a business accountant who is experienced in working with start-ups. They will advise on bookkeeping matters together with taxation and end-of-year accounting. Crucially, they can also provide some additional guidance that may even help you to make shrewd decisions about expansion or consolidation.
Making the Right Decision
Get in touch with a business accountant today and make sure that your journey to success is not peppered with accounting mistakes.
Reach out to a company like Harwood Chartered Accountants to learn more.Share