Apr 3, 2017

Posted by in Fianance

Reasons you should not do your own accounting

Many businesses in Singapore choose to do their own accounting. Whether or not they have free time on their hands, they handle the bookkeeping. Is this a good thing or a bad thing? In theory, doing your own accounting is advantageous because you can save a great deal of money. You do not have to pay someone else to do keep a record of the financial transactions. In practice, however, doing your own bookkeeping will only lose you money. No matter what advanced software you may be using, it will not help you in all situations. The best thing you can do is hire Singapore accounting services. Still not convinced that doing your own accounting is a bad idea? Maybe these reasons will convince you.

Wasting valuable time   

By doing the bookkeeping yourself you will save money, but in return you will lose time. In the world of business, the true currency is not money, but time. So, why waste precious time on tasks like ledger entry or financial analysis? You should better spend your free time finding solutions on how to grow the company. Open another location or better yet look for franchising opportunities.  The point is that you should not let accounting cost you one of your most precious resources: your time.

Payroll is difficult to do

Managing payroll is without any doubt one of the most difficult accounting tasks. The last thing you should do is handle payroll by yourself. Laws are different in Singapore, so you need to know what does work. You can miss wages, which in turn can lead to trouble for your business. It is advisable not to do your own books because you can make costly mistakes. What you should do is hire an accountant. A bookkeeper has knowledge about what should be done. You, on the other hand, are not an expert. Neither do you know Singapore that well.  

Depriving yourself of expert advice   

Your knowledge is limited and that is a certainty. The worst mistake you can do is continue to handle the books, thinking that with time you will become more efficient. The truth is that you will not. You may be able to do a research on the web, but you do not have specialized knowledge or experience. If there is one advantage to having an accountant that is enjoying expert advice. By doing the accounting yourself, you deprive yourself of expert advice. You can use sophisticated software, but it is not the same as having a qualified accountant.  

When you started your business, the last thing you were anxious about was to handle the books. So, why this sudden urge to do the accounting ? Instead of spending all your free time in front of the computer, you should better spend time growing your company. Or spend time with your family. No matter how tempting doing the bookkeeping may sound, it is hard and it is not worth your time. Hire a professional to track your business’ financial transactions.