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Why You're Probably Using QuickBooks All Wrong and Should Just Hire a Professional  

Why You're Probably Using QuickBooks All Wrong and Should Just Hire a Professional  

You've just taken that exciting plunge into starting your own business. In taking note of all the different aspects of being your own boss like marketing and growing your business, one of those seemingly unavoidable aspects is recordkeeping. Whether you're a solopreneur or have a few employees, you're going to have some kind of administration burden, and good recordkeeping is key to having fewer headaches in the long run. When it comes to taking care of your financial records, you are likely relying on a do-it-yourself method like QuickBooks once you started having too many financial transactions for an Excel sheet.

Chances are, you're using it wrong. We know that you likely took a class in how to use QuickBooks (or any other program), and the nice instructor told you that you wouldn't need an accountant if you just learned how to use the program properly. They lied.

Here's why you should leave bookkeeping to the professionals.

You're Not Realizing You're Making Mistakes

Think about trying to fix a sink yourself. You feel you can save money by not calling a plumber, and it seems logical to use a certain type of wrench on a pipe, but suddenly you just flooded the kitchen.

The same exact principle applies to doing your books. It may seem logical to place a transaction in the Cash account, but you were actually supposed to place it under Income. What should've gone to Retained Earnings went to another account you created by accident. Learning how to use QuickBooks doesn't replace learning how accounting information systems are structured from the ground up.

Incorrect posting of transactions can happen without realizing it.

Your Mistakes Can Be Costly At Tax Time

When your transactions are misplaced, they add up quickly and are very costly and time-consuming to fix. This creates more work for your tax professional which means higher fees. Some tax professionals that get very busy during tax season may also refuse to see you until you get these issues straightened out depending on how well-staffed they are. No matter how you cut it, you WILL pay dearly for that mangled QuickBooks file gracing their desk.

If you do your own taxes, it creates more work and a bigger headache for you to attempt fixing. This is a fast route to an audit or examination of your tax return, which costs a lot more than having a professional do it right the first time.

Bookkeeping Is Something You Should Outsource

Having properly done books is important which is why you should trust a professional to handle them. But also, does doing your own books make you better at what you do?

The answer to that question is likely "no," doing your own books doesn't make you a better fitness instructor, writer, life coach, bakery owner, or virtually any other profession that isn't an accountant. By outsourcing your bookkeeping, the fees you pay save you excruciating headaches and free up your time to grow your business and spend time with your loved ones. Your family deserves your time more than Intuit.

If you have prior accounting knowledge, doing your own books won't be as daunting, but for most business owners this isn't the case. By trusting a professional who is familiar with sorting and posting different types of transactions, you not only save yourself the time and aggravation but your tax professional will be happy that they have clean records to work with at tax time. This also helps you if you're seeking capital and need correctly-prepared financial statements.

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Frank Jenkins Jr

Frank Jenkins Jr

Frank Jenkins Jr. is the managing partner of Adams, Jenkins & Cheatham, a CPA practice based in Midlothian, VA. Frank specializes in Consulting services, tax planning, accounting, audit & assurances. "I genuinely care about our clients because I have a personal connection with them. This job requires me to multi-task and work under tight deadlines. I get great professional satisfaction from balancing firm and client commitments while building a strong team here at AJC."

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