The only disadvantage that could possibly relate to financial accounting is that you have to declare your records to the tax officials and pay what is owed, having said that, the more you have to pay is in direct proportion to what you have earned so if you have to pay a lot, well, it means that you’re successful, so no disadvantage there!
On the other hand, financial accounting can have many benefits, and is an essential part of any business. It can give you a focus so that you know exactly how and where your money is going, and it gives you an opportunity to examine your overheads so that you can see if any future savings can be made. This will mean that your profit margins will be greater next year, or that you will have a better cash flow so you can make greater investments in your own business.
If you hate the idea of doing your own financial accounts, then you can always outsource this part of your business. There is no doubt that it is a service that will cost you money, and so will increase your overheads, but you may be pleasantly surprised by just how much money an accountant can save you because they have more experience and knowledge of issues such as tax, and so are able to maximise the items that you can offset. Again, this will have a positive impact on the overall success of your business.
Having somebody else taking care of your financial accounts also means that you will have more time to devote to the running of your business, meaning that you can become even more profitable and competitive, giving your accountant even more to do next year!
On the other hand, financial accounting can have many benefits, and is an essential part of any business. It can give you a focus so that you know exactly how and where your money is going, and it gives you an opportunity to examine your overheads so that you can see if any future savings can be made. This will mean that your profit margins will be greater next year, or that you will have a better cash flow so you can make greater investments in your own business.
If you hate the idea of doing your own financial accounts, then you can always outsource this part of your business. There is no doubt that it is a service that will cost you money, and so will increase your overheads, but you may be pleasantly surprised by just how much money an accountant can save you because they have more experience and knowledge of issues such as tax, and so are able to maximise the items that you can offset. Again, this will have a positive impact on the overall success of your business.
Having somebody else taking care of your financial accounts also means that you will have more time to devote to the running of your business, meaning that you can become even more profitable and competitive, giving your accountant even more to do next year!
