If you’re finding it challenging to manage your own finances as a startup owner, you may want to consider accounting services for small business South Africa. Many small business owners’ debate whether they should outsource accounting services or DIY the finances themselves, especially if they’re trying to cut down on costs. While DIY accounting may save you hiring fees, there are many risks to consider by opting for this choice.
At SureBooks, we understand how difficult it can be to handle your finances as a small business owner, especially if you’re unsure which accounting path you should choose. In this quick read, we’ll be comparing DIY accounting and accounting services for small business South Africa so that you can make the most informed choice for the success of your enterprise.
DIY Accounting: The Pros & Cons
When small business owners have to work within a tight budget, especially after launching their startup, they often try to reduce any additional costs by handling their own accounting needs. Managing finances and keeping your records in check is no simple feat, especially if you’re running your own business at the same time.
If you’re weighing out your options for the best accounting approach to manage your business’s finances, it is crucial that you’re clued in on all there is to know about DIY accounting. Here’s a quick breakdown of the most notable pros and cons of handling your own accounts:
Pro: Save On Costs
Affordability is the number one reason that so many small business owners opt for DIY accounting, especially if they have minimal funds to begin with. If you have the skills and experience to manage your own finances, this could be a feasible option for your startup.
Con: Time-Consuming
While it may be tempting to keep the costs to a minimum and handle your accounts solo, accounting is meticulous and incredibly time-consuming. From drawing up financial reports to keeping track of all the money coming in and out of the business, being an accountant is a full-time job.
If you’re running your own business and opt for DIY accounting, you’re more than likely to be burnt out from all the extra time and labour. Additionally, you may neglect your other responsibilities while trying to manage your finances, which could hinder the success of your business.
Pro: Control Your Finances Directly
If you choose to handle your own books, you’ll be able to direct every transaction related to your business. This provides business owners with more financial freedom as they are in complete control over all financial decisions.
Con: Increased Risk Of Errors & Fees
One of the biggest disadvantages that many startup owners face when managing their accounts is the increased risk of errors. If you don’t have enough experience in the accounting field and you’re running your business at the same time, you’re more likely to leave simple mistakes that could completely derail your bookkeeping process.
Additionally, when the financial data of a company is recorded incorrectly, it can result in some hefty fines and penalties. If you handle your own books but continue leaving errors, you cost your business more money in the long run.
Pro: Flexibility
While this may not be the case for every small business, if your company has seasonal swings or sporadic workloads, DIY accounting can grant you more scheduling independence. By appointing yourself as accountant of your own business, you can manage your books at your own speed and according to your schedule.
Con: Lack Of Experience & Expertise
Accounting involves a variety of complex tasks and methods that may be difficult to understand for those who are inexperienced. Managing your finances means more than just correctly recording money coming in and out of the business – it also helps to comply with tax laws and find new opportunities for financial growth within the company.
Without the adequate experience and skill set required to be an accountant, you may pay your taxes incorrectly, make uninformed financial decisions and be missing out on money-saving strategies that could expand your business.
Benefits Of Accounting Services
While DIY accounting may seem like the feasible option for your business, the unfortunate truth is that there are far too many risks that could devastate the progress of your company. If you want to keep your finances in check without sacrificing time, hefty penalties or other complications, it may be worth your while to invest in accounting services for small business South Africa.
Unlike DIY accounting, accounting services for small business South Africa provide a wealth of experience and expertise for enterprises that need to manage their finances. From complying with regulations to creating opportunities for financial growth, there are many advantages that comes with accounting services for small business South Africa, namely:
Adherence To Tax Regulations
Given how many tax laws there are and how often they’re being updated, it’s no surprise that complying with tax regulations is a common struggle for most startups. With an outsourced small business accountant, you can keep up to date with the latest tax laws and ensure that you’re meeting your deadlines correctly.
Failing to pay your taxes correctly or on time can have devastating effects on corporations, especially for small businesses that have a small access to funds. Rather than facing audits, fines and legal issues related to noncompliance, hire a professional accountant from a reputable agency, like SureBooks, to expertly handle your books.
The Latest In Accounting Technology
Accounting services for small business South Africa have only continued to evolve, allowing for accountants to access the latest in accounting software and digital tools. Whether it be the improved security measures or ability to minimise mistakes, technological innovations like cloud-based accounting helps experts to further improve the quality of their work and produce real-time financial data.
By having access to these accounting tools, you’ll be able to seamlessly manage and safeguard your finances without having to pay for hefty subscription fees. Accounting services for small business South Africa, like SureBooks, ensure that their team of experts are up to date with the latest in accounting technology and software.
Expertise & Specialisation
If you want to ensure that your finances are being handled professionally, accounting services are a worthy investment. Accounting services for small business South Africa have teams of trained, experienced accountants with diverse expertise. With outsourced accounting services, you can trust that your finances will be compliant with the relevant tax regulations and that your reporting will be current and accurate.
When you’re managing a business, you may not have the time, energy or professional experience to handle your books on your own. Instead of drafting up financial records that are likely to have errors, put your trust in a professional accountant that is specially trained and is well versed in the workings of small businesses.
Save On Time & Resources
Why exert your energy during the limited free time you have to DIY your accounts when you can hire an expert to do it for you? Running your own startup requires a great deal of time and resources, especially if you don’t have someone handling your books for you. With accounting services for small business South Africa, you can focus your time and energy on other areas of the business that require your attention, like improving customer satisfaction and expanding your client base.
Your core duty as a business owner is to ensure the success of your startup, which can be tricky to do if you aren’t performing your role adequately. To save on valuable time and further develop your company, outsource a small business accountant to manage your business’s financial health.
Why South African Startups Need Outsourced Accounting Services
If you’ve ever tried to launch your South African small business, you’ll know that there are a wide variety of challenges to face that are unique to our country. From the threat of cybersecurity to a limited access to technology, the unfortunate truth is that many local SMEs continue to face adversity when it comes to running their business successfully.
While this may not be true for every challenge facing South African startups, many of the issues that business owners face relates to a lack of accounting and financial expertise. When small business owners manage their own finances to cut on costs, they sacrifice their access to the latest in accounting technology and software. If you can’t safeguard your financial data with improved data security, you’re more at risk of having your information stolen and fraud. In an age where technology plays such a massive role in the success of businesses, proper cybersecurity is critical.
Additionally, many local SMEs continually struggle to comply with the tax laws of SARS (South African Revenue Service). Failing to pay your taxes correctly can result in large penalties, which can devastate the financial progress of enterprises that already have limited funds. There are over 100 different regulations that small businesses are required to comply with, which can be difficult for startup owners that don’t have the knowledge or experience to manage their taxes.
Luckily, accounting services for small business South Africa can help to alleviate these issues. With outsourced accounting services, local SMEs can not only avoid these common risks, but also implement strategies that can help to further develop their business. Small business accountants are professionally trained to help business owners keep their financial data in check, comply with tax laws and strategies methods that can help the company to earn and save more in the long run.
In Conclusion
Now that you’ve been clued in on the key differences between DIY accounting and small business accounting services, hopefully you feel more informed about the best decision to make for your startup. While DIY-ing your accounts may come with its own unique benefits, it’s evident that there are several disadvantages and financial risks that could hinder the success of your small business. It may be tempting to save on the extra hiring fees, but choosing to manage your finances without professional help may cost you more in the long run.
As a trusted small business accounting agency, SureBooks provides local startups with the financial expertise they require to launch their business into success. With accounting services for small business South Africa, you can elevate your company with professional financial management like no other.
If you’re interested in hiring any of our accredited accounting professionals to help your small business reach its full potential, view our website and contact us online to find out more about our services.
