One of the many benefits the internet has provided netizens is sharing knowledge and skills for learning. DIY videos and articles abound from something relatively simple as making liquid soap to more complex skills such as repairing your laptop. DIY may sound practical but depending on what you will be working on, you may be courting disaster doing things yourself. DIY accounting is an example of a highly technical activity that poses danger when not done well. Simple mathematical mistakes, delayed recordkeeping, and missed deadlines can cause you to lose profits, ruin relationships with suppliers, pay hefty fines, and let you spend more money. Here are five reasons why it isn’t smart to deal with your business’s finances alone.

1. Keeping up on Bookkeeping

Keeping the books consistently and staying on top of it is key in bookkeeping. Recording financial transactions requires time and patience, which you may not always have. For someone focused on the day-to-day operations of the business, bookkeeping seems like a task more likely to be pushed to the side. When that happens, you will quickly fall behind. A book that’s not kept up to date may result in:

• Loss in profits when unpaid invoices are not noticed
• Strained relationship with suppliers from unpaid invoices leading to bad credit rating
• Unpaid taxes resulting in substantial penalties and interest charges.
• Work overload during tax season

2. Over Dependence on Technology

Most available accounting technology is usually not plug-and-play that will do all the work for you. Even if you have chosen great software, you still have to determine that it works and how to properly use it. A technology that works for one company doesn’t necessarily mean it will work as well for you and your company. You must do some research to figure out what will best suit your needs.

3. Last-Minute Tasks

To many business owners, accounting is not as important as other business-generating activities. It is considered a chore and not part of their regular job. Since it is not a top priority, it is not given attention until the last minute often causing:

• Missed deadlines that can let you pay hefty penalties
• Mistakes that take time to correct and cost money
• No planning for the future that cost money as well

4. Poor Record-keeping and Organization

Small business owners are so engrossed on the business side of their work, they hardly have time to manage record-keeping and bookkeeping, not to mention their lack of skills in those areas. Most often, these activities are not part of their to-do list; they are deemed to be taking their time away from the business.

5. Trying to Do It All Yourself

With limited manpower, entrepreneurs in small businesses think doing everything themselves such as accounting is cost-effective. It is not. DIY accounting can cost you more in the long run. Time is money. Unless you are an experienced accountant, you are better off spending your time on your core competency running the business. where you can create more value. Working with a knowledgeable accountants and bookkeepers to do accounting for your business is both prudent and smart. You ensure the accuracy and timeliness of your financial records. You get sound financial advice and keep with up the latest changes in tax legislation. Most importantly, you can make better use of your valuable time on more critical business issues where you can create an impact.