How DIY Accounting Could Cost you and your Business

When starting a production company, owners often need to take a do-it-yourself (DIY) approach to many business needs at first. Until they’re able to hire employees, the founder commonly handles the accounting to safeguard the company’s money. However, DIY accounting can put you and your business at risk for a lot of problems.

Before you rely on DIY accounting, consider that:

Growing a business takes a lot of effort and time

Unless you’re with an accounting firm, your strongest skill likely isn’t accounting. While you could perform many accounting functions using online tools, it certainly wouldn’t be the best use of your talent. The hours you’d spend on keeping your books, writing checks, and invoicing clients, for example, is time you wouldn’t be able to spend on sales and business development. Although you could save money, you’d probably be missing opportunities to grow your revenue.

Improper accounting can incur real penalties

How you pay your employees, contractors, and other vendors can be complicated, especially if your company operates in different states. If you don’t properly pay your employees on the payroll or report your contractors on a 1099, you may face financial penalties. Improper accounting can also cause issues around income tax reporting, potentially forcing you to pay additional taxes or somebody else to clean up your books. The list of potential pitfalls around accounting is fairly long.

Experience really does matter in the finance and accounting fields, and a lack thereof could cost you significant money and opportunities. When you’re starting out, you may understandably want to handle your own accounting. But don’t wait too long to seek out experienced support. An accounting expert will enable you to more productively spend your valuable time and find peace of mind knowing that your books are well-managed.