Accounting is a crucial part of running a business. If you’re a small business owner, you may be wondering whether to handle your accounting yourself or use a professional service. If you choose to manage your own accounting, it’s essential to familiarize yourself with the necessary knowledge and tools beforehand.

1. Consult an accountant and assess the workload

Before deciding to handle your accounting yourself, we recommend consulting an experienced accountant. They can help you:

• Understand the volume and complexity of your business’s accounting
• Identify monthly and annual obligations
• Determine which tasks you can handle yourself and which require an accountant’s expertise

An initial consultation with an accountant can help you avoid beginner mistakes and ensure that your business finances are properly managed.

2. Choose the right accounting software

If you decide to do your own accounting, selecting the right software is essential for managing your daily tasks efficiently. When choosing accounting software, consider the following:

• Does your business need specific features besides invoicing and bookkeeping? Features like inventory management, payroll, production, or e-commerce integration can be crucial. Most accounting software solutions cover the basics, but it’s important to check for additional functionalities.
• Is the software user-friendly? Many accounting programs are designed for professional accountants and may not be intuitive for business owners. Choose software that is simple and easy to use. Test two or three options by creating a sales invoice (one of the most frequent tasks). This will help you determine which software is the most user-friendly for you.
• Can the software export data in a compatible format (CSV, XML)? If you ever need to switch software, it should be easy to transfer your data (clients, products, sales invoices, purchase invoices). Unfortunately, some providers limit data exports to keep customers locked in.
• Compare pricing plans and additional costs – Check whether you need to pay extra for features like e-invoicing, additional users, quotes, or payroll modules. 

  Bonus tip: Your business should create the software account itself. Why? Because legally, the data entered belongs to the account owner. If your accountant’s firm registers the account, they own the data, and in case of disputes, you could lose access to your own financial records. 

3. Manage daily accounting and fulfill tax obligations

To keep your accounting organized and hassle-free, it’s important to document all transactions properly and meet tax obligations on time.

• Issuing and sending invoices: Ensure all invoices comply with regulations, include required details (such as invoice number, date, service description, and price), and are sent to the correct recipient. Using reliable software makes it easier to track invoices and reduces the risk of errors.
• Storing documents: Keep all purchase and sales documents organized and digitally archived to ensure quick access when needed.
• Tracking bank transactions and cash flow: Record all incoming and outgoing payments and review your bank statements regularly (e.g., monthly) to ensure all transactions are accurately reflected in your records. This helps prevent errors and ensures financial accuracy.
• Filing tax returns and reports: Meet your tax obligations, such as VAT and payroll taxes, and submit the annual financial report to the Äriregister. 

When Should You Hire an Accountant?

If you have simple and flexible accounting software, you can manage most of your bookkeeping tasks as a small business owner. However, there are situations where hiring an accountant is a wise choice:

• As your business grows and transactions increase – Higher volumes and larger financial transactions make accounting more complex and time-consuming.
• When accounting becomes too complicated – The more complex your financial records, the greater the risk of errors. Fixing mistakes later can be more costly than hiring an accountant from the start.
• If you want to focus on growing your business – Consider how much time you spend on accounting and whether that time would be better spent on business growth, marketing, or sales. If bookkeeping takes up too much of your time or interferes with your core business activities, professional accounting services can be a valuable investment.At SimplBooks, we work with a network of experienced accountants who can help you keep your finances in order. Find the right accountant for your business today!