I'm starting out, and I don't really know much about accounting or making sure the money is done properly. Is accounting software easy to use for someone who doesn't know much about it? Or should I just bite the bullet and find an accountant to deal with it for me? Especially when tax-time comes?
6 Comments
slazer2au@lemmy.world · 6 pts · 7d
If you are running a business you should have an accountant to make sure you are tracking things correctly and getting the most out of tax benefits.
You don't have to have an in house one, use an external one and if you do have trouble tracking stuff a book keeper is who you should think of hiring inhouse.
rimu@piefed.social · 5 pts · 7d
Thing is, it's not just about figuring out the software - it's about knowing enough accounting basics so you understand why you want to use the features the way they're meant to be used. And if you do it wrong nothing bad happens for years until one day the IRS drops a bomb on you and your business is wiped out.
I do both - I use xero.com to issue invoices and to do reconciliation, then when it's tax time my accountant looks over what I've done, fixes up anything silly and then submits it to the tax dept on my behalf, with his stamp of approval added. So I do the bulk of the work and he does very little, which keeps costs down.
Because he's involved my chance of getting audited (this is a huge hassle when it happens because they freeze your bank accounts for months - you really really don't want that) is basically zero.
You could hire an accountant for a couple of years until you get the hang of it, then go it alone.
TragicNotCute@lemmy.world · 4 pts · 7d
Bite the bullet and get an accountant.
Some years ago my taxes got more complex and I thought I could just do it online. TurboTax told me I was going to owe a bunch. I went out and found a CPA firm and after having them do my taxes, I saved so much money it paid for the fee they charged.
A good accountant is invaluable. I’d recommend a firm over an individual.
Slush@lemmy.world · 3 pts · 7d
Hey, I'm a CPA who has spent about a decade in public practice (now in industry).
I'd say it depends on you and your business. It was extremely common for simple businesses to record basic transactions on Excel or in Sage*, Intuit, Xero, etc and as the public accountants we worked as a double check for their work.
Some were good, some were not.
I'd say it depends your business. If you're running inventory and selling products or food, maybe finding a bookkeeper or accountant is better.
If you're selling your time (IE service based) I'd think you tracking your own accounting is fine.
Make sure your bank balance on your books ties into your statements, same with credit cards.
Feel free to ask questions!
Slush@lemmy.world · 3 pts · 7d
I should add that having an Accountant handle your tax returns is always a good idea!
LLMhater1312@piefed.social · 2 pts · 6d
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