This is highly dependent on how comfortable you feel with the task along with understanding the time commitment that would be required to ensure accurate records are being maintained.
It is customary for business owners who are starting out to handle various aspects of their business including the accounting and tax functions. If you are planning on keeping your own books, you should invest in a good bookkeeping program. Depending on your specific business situation you may even be able to start off with a simple excel spreadsheet to record your business transactions. If you decide to invest in a bookkeeping program, you should also take the time to learn how to use the program. Keeping your finances in order will save you tons of time come tax time. When you are ready to do your taxes, you should also invest in a tax program.
Another step that you should take to make sure your bookkeeping system is on the right track when starting out is to hire a professional bookkeeper to take a look. Many small business owners that keep their own books hire a professional for a few hours to make sure their bookkeeping system is set up well and will function correctly. Then continuing onwards on a monthly or quarterly basis — or annually at a minimum; however, the more frequent the better as issues may be found and could be resolved in a timely manner.
When your small business is making a steady profit, you should really think about hiring a bookkeeper, at least part time, to take care of your day-to-day expenses. You can then take your books to an outside tax professional when it is time. Another option is to hire an accounting professional to handle your bookkeeping and tax functions and to serve as your business advisor at the same time. When the time is right this becomes a highly attractive option for small business owners. Remember that at some point it will become more profitable for you to assign these tasks to others.
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Author: Rosy Conde, CPA
Rosy Conde is a financial coach and business strategist with a passion for learning and helping others by offering business and financial advise and tips. She serves as a guidance in helping passionate entrepreneurs, who have a desire to launch and run their own successful business in today's modern world.