Did you know that almost half of small businesses that fail do so because of poor bookkeeping and accounting?

If you own a small business, you may feel like auditing your books every day is a waste of time. Yet, there are many benefits to keeping good records for your company.

Accounting for your small business is important for ensuring that it runs smoothly and efficiently as well as avoiding SARS trouble.

This article will explain why you need an accountant for your small business and how you can avoid the pitfalls most new businesses face.

A reason why you need an accountant - stressing business owner

What’s the benefit of doing your own accounting for a small business?

If you’re a small business owner, you’ve faced the decision of whether to do your own accounting or hire an accountant to do the work for you. You may believe that employing an accountant is too costly for a small business. Or that you can handle the work yourself because you work with numbers in your day job.

But keeping your books yourself can have many drawbacks. First, you may not be as efficient at it as an expert. Bookkeeping can be complex, especially when it comes to taxes. If you’re not careful, you could end up missing key tax deductions that will end up costing you money. At the very least, keeping your books yourself is time-consuming. You likely have a full-time job outside of your business, and you might not have the extra time to devote to keeping your books up to date.

3 Reasons Why Small Businesses Struggle With Their Books

There are many reasons that small businesses struggle with their books, which are often due to a lack of oversight.

Small businesses often rely on one person, usually the owner, to keep track of everything. This is problematic because it’s not always easy to keep everything straight.

As a business owner, you’ve surely noticed that it’s far more difficult to keep track of things when they’re all in your head than when they’re written down.

Another reason businesses struggle with their books is that there’s no consistency. Small businesses often have many different people come in and out of the business, and it can be hard to keep track of who does what and when. This makes it hard to know who to look to for the information you need.

When it comes to taxes small business owners do not know all the nitty-gritty of the compliance aspects. This has lead to numerous cases of hefty fines and penalties dished out. Read further here how SARS is clamping down on negligent tax offences.

You Should Hire an Accountant to Audit Your Small Business Books

If you’ve been keeping your books for some time now, you may be able to identify some areas that might cause you problems. But, a fresh pair of eyes is sure to catch something you’ve missed.

An accountant can look at your books in a way that you can’t. They’re trained to look for specific problems, such as payroll issues or excessive tax deductions. If you’re unsure if you’re making the most of your deductions, an accountant can tell you for sure.

If you notice a glaring discrepancy in your books, it could be a sign of a larger problem. But, it’s better to catch a mistake early on than to wait until you’re audited. It’s better to be proactive and solve the problem now than to be reactive later.

3 Ways An accountant will benefit your business

Doing your own accounting can be tricky, especially if you don’t know what you’re doing. If you’re not careful, you could end up putting your business at risk of an audit. Or worse, an audit that results in fines or fees.

An accountant will know how to report your numbers and make sure you’re following the rules. Accountants are trained to notice trends and issues that you might not catch.

A professional can look at your books and tell you where there are problems, such as where you could be making more money or where you’re spending too much.

An accountant can help you make sure your business is running smoothly and you’re making the most of the profit you’re bringing in.

Key takeaway

It’s important to remember that doing your own accounting and keeping track of your finances is not a crime. You can do it if it makes sense for your business. But you should always hire an accountant who can help you make sure you’re following all of the necessary rules.

A good accountant will be able to help you avoid the pitfalls most new businesses face and ensure you have the best possible chance at staying out of trouble with SARS.

That’s why it’s important for every business owner to hire a professional to help manage their books. From keeping track of accounts receivable and managing cash flow. To helping you set up your payroll and write your company’s financial statements—a professional accountant can do it all!

Check out our services page for thorough list of services we can assist you and your business with. Better yet, get a started today with a free consultation!