Do you book your own accounts or outsource your bookkeeping? July 2, 2021 – Posted in: Accounting – Tags: Accounting, bookkeeping
As a self-employed person you must keep your administration up to date. You can choose whether you want to do this yourself, for example via Excel or an online accounting program , or whether you outsource the accounting to an accountant. In order to be able to choose whether you will do the accounting yourself or outsource it to an administration office, it is important to consider the advantages and disadvantages of both options. In the first instance, it is a choice between time and money. When the bookkeeping is outsourced, it costs the entrepreneur more money. On the other hand, it saves time. In addition to time and money, there are more aspects that weigh in this decision, we give our view on the pros and cons in this blog.
Do your accounting yourself as a freelancer
If you want to do your bookkeeping yourself, you have several options. You can choose to keep your accounts in Word and Excel. For example, you can create the invoices with Word and the other administration with Excel. The problem with this method is that it can be error prone. A typo was quickly made. And how do you know whether you are complying with ‘the rules’? Although this is of course a cheap option, partly due to the error sensitivity, it can quickly add up to costs if you have your accounting corrected afterwards.
The other option is to use an online accounting program. In an accounting program you can often easily make quotations and invoices , enter your receipts, register hours and of course keep the bookkeeping. You do the accounting yourself, but with the support of the program in which many accounting operations are already automated. An additional advantage is that your accounting is immediately stored securely and online. This also applies to Rumpslomp. An accounting program gives users the tools to easily do the accounting themselves, and if you still can’t figure it out, you can often turn to a support desk.
The pros and cons of doing your accounting yourself
The advantages of doing your own bookkeeping:
– Doing the bookkeeping yourself provides more insight into the financial situation of your own company;
– It can also work more efficiently, because as an entrepreneur you do not have to discuss all decisions with the accountant;
– It never hurts to own the financial knowledge that is so important when running your own business;
– If you do your bookkeeping yourself, it’s a lot cheaper, after all, you don’t have to hire someone. Eventually you become an expert in accounting.
– If you do your accounting yourself, you will still need to have the necessary accounting knowledge. An accountant is often already aware of all the rules;
– It can take more time if you do the bookkeeping yourself;
– It can be extra worry if you are not sure what you are doing;
– Possibility that you have incorrect accounting that does not comply with all the rules. This can add up in costs if this has to be corrected afterwards.
Completely outsource your accounting
Another option is to outsource the entire bookkeeping. In that case, you let a professional accountant do everything for you. It is then important that you keep track of all your invoices and ensure that they reach your accountant. You also send all receipts for business expenses to your accountant. When the entire bookkeeping is outsourced, you also have to maintain frequent contact with your accountant. This presents you as an entrepreneur with choices and vice versa you will consult the accountant with some decisions.
A survey by zzpdaily has shown that an accountant charges an average of €87 per month, €1,044 per year, for the complete bookkeeping of a self-employed person. 75 accountants were compared in this study. Each of these 75 accountants was asked the same thing: 5 sales invoices and 10 purchase invoices per month, quarterly sales tax return, annual income tax return and a consultation meeting per year.
The pros and cons of outsourcing your bookkeeping
Of course, completely outsourcing the bookkeeping has both advantages and disadvantages.
Here are the advantages at a glance :
– It is initially a lot easier for you as an entrepreneur to outsource everything. You then only have to focus on the core tasks of your company.
– An accountant also generally has better knowledge of possible deductions and other arrangements, which can also save money.
But completely outsourcing also has disadvantages:
– As mentioned above, outsourcing your bookkeeping is a lot more expensive than keeping it up to date yourself;
– Because you are not working on it, you can less guarantee the view of your own accounting;
– You may be less aware of the financial aspects of your own company;
– A risk of outsourcing is that an accountant can make mistakes. Because everything is outsourced and you are not in it yourself, you as an entrepreneur will not find out quickly;
– You should now always discuss decisions with your accountant. This could hinder your flexibility in making certain business choices. Incidentally, this can also be seen as an advantage, an accountant becomes a sparring partner for you as an entrepreneur.
Do your bookkeeping yourself together with an accountant
There is also a third option where doing it yourself is combined with the services of an accountant. As an entrepreneur, you will still be the one who has to make quotations and invoices. You will also be the one in possession of your expense receipts and you can easily save them in your accounting program.
So in principle you can keep track of your accounting yourself with the help of an online accounting program. You can then give your accountant access to your accounting program and he/she can check the bookkeeping, file the returns and, if desired, prepare annual accounts. It is up to you how you work with your accountant. For example, the accountant can only be engaged for the income tax return and you can easily do the VAT return yourself, for example.
The pros and cons of doing your own bookkeeping with an accountant
Combining doing it yourself with an accountant has a lot of advantages:
– The costs are lower than when it is completely outsourced, because an accountant has to spend fewer hours on the bookkeeping;
– As an entrepreneur, you always have insight into the accounting, because you keep it yourself;
– Creating invoices and entering receipts are relatively easy tasks. The accountant can be called in to do tax returns and give advice;
– The bookkeeper adds just a little extra knowledge that you may not have on your own.
In our opinion, there are actually no disadvantages of this option, apart from the fact that it is logically more expensive than if you do the bookkeeping yourself.
We hope that based on this article, you can make a better choice in how you will keep your bookkeeping. There is no right or wrong because everyone has their own wishes and needs. The most important thing is that you find the best way for you so that you can be worry-free with your business.