Why You Shouldn’t DIY Bookkeeping

Infinite Accounting Solutions |


You’ve just started your own company, and you’ll most likely be relying on yourself to do a wide array of company activities to save money while you’re first starting out. Like many business owners, you may believe that owning a business entails taking on the role of bookkeeper.

However, nothing could be further from the truth! Having to deal with bookkeeping issues can divert your attention away from more crucial tasks such as recruiting new clients and promoting your business. 

At Infinite Accounting Solutions, we’ve witnessed many business owners fail to manage their finances due to inaccuracy and lack of time and expertise, jeopardizing their company’s financial well-being in the long run.

Therefore, to help you understand why you shouldn’t DIY bookkeeping, we have noted four key reasons in this blog. Keep reading to know what they are and how to avoid unnecessary hurdles.

1. Inaccurate books
If you were to categorize an expense wrong, you could be missing out on tax deductions. If you left Accounts Receivable invoices to go unnoticed, you could be missing out on revenue. If you aren’t on track with Accounts Payable and what bills need to be paid, you could be straining your relationship with your vendors.

2. Falling behind in entries and reconciliation
Time may not be on your side, especially when there may be daily issues to address. Months can quickly pass without making entries in the books or reconciling any business checking statements, credit card statements, sales tax accounts, or other financial accounts. This means financial statements and reports are not current, and without up-to-date information, it is challenging to make sound business decisions.

3. Miscalculation of profits and expenses
A miscalculation or misleading figure may massively affect the cost of goods sold, net income, and gross profit. Furthermore, it is important to maintain the income and expenditure statement up-to-date. Any error in this sheet may directly affect your profit and loss statements, leading to understating or overstating of profit or loss.

4. Lack of time and expertise
You need to have a good understanding of the general ledger, the different account types, and their typical balances. Besides, you have to pay attention to detail to spot miscalculations or improper entries and accurately record amounts. What’s more important is having time management skills to keep on top of taxes and payroll due dates.

Do things right - hire a professional!
Professionals will save you time so you can focus on what you do best while they manage your finances. Having a professional handle your bookkeeping ensures precise entries, proper spending categorization, reminders for tax and payroll deadlines, and regular up-to-date financial reports to help you understand where your business stands financially so you can make informed decisions in the future.

While some bookkeepers begin their careers without certification, your ideal bookkeeper should have some education and experience to assist you with all of your bookkeeping needs.

You may also find some bookkeepers who may only have a certificate, while others may have a diploma or a bachelor’s degree in business administration or accounting. In Canada, bookkeepers can also become Certified Professional Bookkeepers (CPB). So, hiring a bookkeeper with a qualification or membership in an association is critical since it displays their professional position and ensures great work and dedication.

Generally, an outsourced bookkeeper’s monthly services usually start at $500 per month for full cycle bookkeeping. The price is dependent on the services required and time needed to complete your books.

If you’re looking for a bookkeeping service provider, reach out to Infinite Accounting Solutions. We are a well-known bookkeeping firm based in Langley, British Columbia, that specializes in a variety of accounting services. Our dedicated staff will assist you in managing your business finances and everyday accounting operations. Daily bookkeeping, payroll services, reconciliations and reviews, accounting software training, nonprofit accounting, and bookkeeping are some of the services we offer.

To learn more about our packages offered, click here or get in touch with us by clicking here