Is It Possible to Manage My Business Accounting by Myself?

Can I do my company's accounting myself?

In this article, we'll address this topic, considering the nuances and risks involved to provide a general answer for interested persons.

The answer is YES!

We've also had some successful cases, however most until the first tax audit or until the moment when the business needs to expand, then anyway the necessity to contact an accounting company will appear.

At first glance, the idea of personally managing your business accounting may seem attractive, especially from the perspective of saving costs. In principle, who doesn't want to maximize their profits, reducing expenses where possible?

However, as we discussed in previous articles about tax optimization, momentary savings can hide significant costs in the future.

Managing your own accounting comes with the responsibility of staying up to date with tax and accounting legislation, which is often complex and subject to frequent changes. A misunderstanding or omission can lead not only to costly errors, which are difficult to correct, they can also have a significant impact on the reputation and long-term viability of your business.

From our experience, we've observed that many entrepreneurs who try to manage their accounting themselves often rely on information found on the internet. The problem is that many of these resources are not updated, leaving room for misinterpretations of legislation or tax procedures.

For example, some outdated articles still mention the need to register with various state authorities within two months of opening the business, a procedure that is no longer current since 2014, and some beginners even today contact us with such requests.

Before making the decision to manage your accounting yourself, it's crucial to evaluate a few key aspects:

Your business complexity:

If you run a small enterprise with relatively simple financial transactions, self-managing accounting may be feasible for the moment, you'll only need accounting software and basic knowledge. However, as the business grows, the complexity of financial management increases proportionally.

Time and effort:

Accounting requires a significant commitment of time and attention to detail. Are you prepared to allocate the necessary resources to ensure all records are accurate and complete?

Your knowledge and experience:

Do you have the necessary experience and knowledge to navigate through the complexities of accounting and taxation? Errors due to lack of knowledge can have serious consequences.

A professional accountant not only helps you avoid costly mistakes, but can also provide valuable advice for tax optimization of your business.

Remember that accounting errors accumulated during accounting management can limit your options when you decide to turn to professional services anyway, since many companies may hesitate to take over a business with a complex history of accounting problems.

In conclusion, the decision to personally manage your business accounting is one not only of saving costs, but also of assuming risks in the long term

It's essential to recognize that accounting errors accumulated over time are not only difficult to correct, but can also limit your options when you decide it's time to turn to professional accounting services.

Although correcting accounting errors is possible, the process amounts to repeatedly performing accounting for all the years you managed it yourself, In the end you pay the same amount as for initially addressing accounting specialists, only with more lost time and effort expended, besides all you risk accumulating penalties and low reputation.

Therefore, carefully weigh all aspects before making a decision.