By Adam Caplan, Partner 

We meet lots of business owners who start out by handling their own bookkeeping and tax returns.

While this may be fairly straightforward to handle at the beginning, at some point DIY-ing your finances will no longer cut it.

Without a dedicated expert on hand, you could end up spending far too much time managing your finances – time you could be spending with your customers, developing your products, or taking a well-earned break.

So, when should you DIY, and when should you outsource?

In the beginning, there was DIY

When you are just starting out on your business and are in the early stages of growth, your finances will be relatively simple to manage on your own.

For example, setting a simple budget for your first year of business is relatively straightforward and will help you get into good financial habits from the start.

You should be able to keep your receipts and invoices organised (digitally if possible) and utilise cloud accounting software (such as Sage) to record your income and expenses, as well as keep an eye on your bank balance and cashflow.

Taking care of your business finances yourself at this early stage is a sensible step to save money, develop practical business skills, and give you a clear understanding of the financial health of your business.

Then, there was outsourcing

Of course, there are always tasks that you should never DIY because they require the knowledge and expertise of an experienced accountant.

These include year-end accounts, and Corporation Tax returns, payroll, and Value Added Tax (VAT) returns.

However, there are some finance tasks that are manageable when you first start out, but soon become too complex to be handled on your own.

For example, you might be able to manage your own bookkeeping for a while, but you should outsource it to the experts as soon as you become too busy to keep on top of it regularly.

An accountant can also advise you on whether your existing business structure still suits your business needs and help you to change this structure if necessary – for example, by incorporating your business as a limited company.

When you are planning for growth or want more certainty over your finances, bringing in an accountant to provide cashflow forecasting and budgeting support can be invaluable.

A tax specialist can also help you take advantage of allowances and mitigate your liabilities with tailored tax planning services.

Finally, an expert accountant can act as a sounding board and provide useful insights and advice to help you make better business decisions.

Outsource your finances with FFT

Just because you run an independent business doesn’t mean you have to do everything on your own.

As a general rule, you should outsource your business’s financial tasks as soon as you feel out of your depth.

Seeking specialist advice from a chartered accountant can make the difference between the success or failure of your business.

At FFT, we understand independent businesses like yours because we are an independent firm ourselves.

We’ve faced the challenges you face, so we know what it takes to make a business thrive.

With our specialist support, you’ll be able to focus on growing your business, with peace of mind knowing your finances are taken care of.

Download our guide to independent business today to discover more about how we can help you with your business finances.