Can I better do my own accounting for a small business or is it recommended to hire an accountant?

I know several people who like to gather their receipts and bring them to the accountant.For them, the self-doing of the accounts is very little.

However, if your business has a growth goal in personnel and activities, and you want to stay in the boss, it is very important that you understand the finances well.The engine of a company is the sale (making value for which others want to pay) and the financial reporting is the dashboard which shows that the engine is functioning properly. We are throwing fuel (cost) in the engine, and it is the intention that the engine will yield more as a cost. If this Is not the case, we must take action or stop.

For me it is criteria for whether or not to do the accounting yourself the complexity of the company (a trading company has quite different issues as a zzp-er) and the ultimate objective of the entrepreneur.
If you want to be big you need to understand the finances and that you can learn better in small.In the long term you can outsource it.
You can also make a cost/benefit analysis.I have been doing the accounting of a knowledge with my own company for years and because it was a simple sole proprietorship I could largely automate it in Excel. My knowledge itself included the revenues and expenses, so that at the end of the year we only had to do a round-count and valuation to get both the accounting, the last VAT declaration and the income tax in order.
The remainder was automated, including quarterly VAT returns.
If you have to do all this work by hand, and you have to keep the laws and regulations yourself, you often spend more than an hour per month on accounting, which is quickly a few hundred euros depending on your hourly rate.
You can of course argue that you spend this time outside of your normal working time and therefore you can not run extra turnover, but then you do not charge (wrongly) any costs for formatting your free time for your business.There comes a time when your time is worth more than what you have to give out to an accountant, that’s the time to outsource.

However, as an entrepreneur you can never completely loose the accounting.You need to keep an insight into how the value creation of your company is created and how it develops, as well as how the incoming and outgoing cash flows relate to each other and whether here (season) trends are found. In fact, a company is nothing more than a series of cash flows, outgoing cash flows to allow an activity and incoming cash flows as compensation for the activity. If you don’t keep this in mind, you’re at a great risk of doing the wrong thing and your business is in financial trouble.

When I bought my own company in 2010 I decided to do my own bookkeeping.I do all the tasks except the annual federal tax return.

There was a lot to learn, and also had to happen quickly because monthly tax expense should be paid on time.

Benefits:

  1. You always have your finger on the wrist
  2. You know that expenses are posted correctly
  3. You are responsible and can no one disrepute if things go wrong
  4. Saves a reasonable amount of money.

Disadvantages:

  1. You have to be very disciplined.

At the 10th of the month I have a P & L for the previous month

  • In the beginning a lot of work-so also risk, you spend time “outside of your core competencies.”
  • I think that the benefits add more than the disadvantages pull off.

    It is the size and complexity of your business.I am e.g. So, do not have staff and only provide services and no goods. Also I do not do business abroad.

    This means that I have a very simple bookkeeping, and therefore do not have to hire an expensive accountant.One year report and one phone call every year and I’m done. That’s what I let a bookkeeper do, incidentally, is not that very expensive. I do keep up with receipts, do declarations, simple administrative work. And so I also keep an overview.

    But only when a company has staff, and trades with large amounts (possibly abroad), I would certainly turn to an accountant (office).You can’t have any sense of it anywhere. Better self-focus on your company, and outsource that.

    Accountant does not need, you do not need for your financial statements.What you can do yourself on Saturday morning; Structure your receipts, mount your bills, and arrange your payments. Will cost you 2 hours.

    You call it a small business so a checkout you probably don’t have?Do you also have no accounting package? Nice.

    In Excel, you create an overview with these columns: Debtor/Creditor name, spending target/invoice number, income, expenses and VAT.You’ll be working on Saturday mornings. Then you call a bookkeeper (not an accountant) who will let you do your tax return once every three months, even for the year. If IE has more than 6 hours of work per quarter, IE is not worth the money.

    Ready.As long as you don’t have any staff, don’t do anything else.

    Don’t have to cost much to get it done.But, yes if you have the time anyway why not use it and do it yourself? But there might be something not quite right.

    You are busy in your own business because you meet a question.Your business runs well because you answered that question well. You are expert in answering that question.

    Why would you be doing your time with things that distract you?Surely it is better to have those things done by people who are experts and that you use the time in your expertise?

    Online accounting programs such as http://jortt.nl offer small businesses and entrepreneurs the ability to do their accounting themselves.It is also possible to do the financial statements that do not require an accountant. This saves between 鈧?00 and 鈧?,200 per year.

    As a small company, it is of course very good to gain more insight into the financial side of the company.You can do this only if you do your own accounting. On the other hand, an accountant can sometimes better advise you on tax benefits (tax tips are also available on Google). The website www.belastingtips.nl-Belastingtips.nl gives a lot of useful information about this.

    An option may be that you start your own bookkeeping and later, if it gets too busy and/or the convert, enable an accountant/tax analyst.

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