Entrepreneurs, particularly those running startups or small to medium enterprises (SMEs), often find themselves at a crossroads when deciding how to manage their business finances. For many, the choice comes down to either hiring an accountant or taking on the financial responsibilities themselves. This decision can have far-reaching implications, from cash flow management to tax compliance, and is crucial in ensuring the long-term stability of the business.
As digital tools have advanced, it has become easier for small businesses to handle their own financial management without the need for an accountant. Solutions like those we offer at Maya Business make it more feasible to manage daily financial tasks, such as tracking expenses and performing online business banking transactions, through intuitive and efficient platforms. However, some companies may still benefit from professional assistance depending on the complexity of their financial operations, which makes this a decision that business leaders should approach carefully.
In this post, we will walk you through several key considerations to help you decide whether your business would be better off hiring an accountant or managing finances on your own. By the end, you'll have a clearer sense of what will work best for your specific business needs.
Tools and Technology
The digital age has transformed the way small businesses manage their finances. Entrepreneurs can now tap into a variety of financial management tools that simplify tasks traditionally handled by accountants. These platforms automate everything from bookkeeping to tax filings, allowing business owners to keep better track of their finances. Financial management solutions are also becoming increasingly comprehensive in terms of their functionalities; many of the best ones can manage expenses, create invoices, and even generate financial reports, all of which save valuable time for entrepreneurs who may lack accounting expertise.
For those looking for more specific business banking solutions, Maya Business Deposit provides a convenient, tech-savvy alternative to traditional financial management. With high interest rates, seamless fund transfers, and an easy-to-use digital platform, Maya Business Deposit helps entrepreneurs stay on top of their cash flow while earning more on their deposits. With a tool like this in your corner, you won’t regret taking your business banking online—and, depending on the specific nature of your business, you may just be able to reduce your company’s need for constant professional intervention.
Complexity of Financial Needs
As a business grows, so too does the complexity of its financial management. Companies with multiple revenue streams, employees, and inventory will find that managing finances involves more than just paying bills or filing taxes. Payroll, regulatory compliance, and detailed financial reporting quickly become overwhelming tasks for those without a background in accounting. In these cases, hiring an accountant can help streamline the process and ensure nothing falls through the cracks, which, in turn, will protect the business from costly errors or compliance issues.
However, not all businesses are this complex in terms of their operations. If your financial needs are straightforward—limited to managing invoices, expenses, and tax obligations—digital tools may suffice. If you’re confident in your ability to manage these aspects on your own, you may find it more cost-effective to invest in cutting-edge accounting software than to hire professional help.
Cost vs. Benefit
When considering how to approach financial management, cost is often one of the most significant factors. Hiring an accountant entails an ongoing expense, but it can offer long-term savings through optimized tax strategies and error-free operations. Accountants also often uncover tax deductions or credits that entrepreneurs might otherwise miss, which can significantly reduce the tax burden. Moreover, the peace of mind that comes with knowing your financial reports are accurate and compliant can prevent costly mistakes down the road.
For simpler businesses, however, managing finances independently may be sufficient. If your company’s transactions are straightforward and your tax obligations aren’t overly complex, you might not need an accountant to optimize your expenses. With some basic financial knowledge and organization, the savings you achieve by handling finances yourself could be substantial and free up funds for other business priorities.
Knowledge and Expertise
Financial management is not just about keeping the books balanced; it also requires knowledge of tax laws, regulatory compliance, and strategic financial planning. Many entrepreneurs lack this level of expertise, which can lead to errors that could be costly both financially and legally. Accountants bring professional training and experience that allows them to navigate complex financial issues, ensure businesses comply with tax obligations, and take advantage of financial opportunities.
In certain cases, though, smaller businesses might not need to rely on that level of professional knowledge. For example, if your business only deals with a few clients or suppliers and doesn't have payroll or inventory to manage, the expertise required is much less demanding. Entrepreneurs who are willing to educate themselves on basic financial principles can handle much of the necessary accounting work. Tax laws and filing requirements for small businesses are also often simplified, and plenty of free resources are available to help you stay compliant.
Long-Term Growth Plans
A startup may manage its finances independently in its early stages, but scaling up brings challenges like managing payroll, handling multiple revenue streams, and preparing for audits. An accountant can be a crucial advisor during periods of growth, as they can help businesses plan for future financial challenges, take advantage of scalability, and guide strategic decisions that affect long-term profitability.
On the flip side, if your business’s growth is gradual or modest, you may not need an accountant to manage your finances at every stage. Instead, periodic consultations with an accountant during key phases—such as tax season or when expanding into new markets—might be enough to keep you on the right path. This approach allows you to save on costs while staying prepared for any eventual growth opportunities.
Level Up Your Financial Management with Maya Business Solutions
Whether you ultimately choose to employ an accountant or go the DIY route, strong tech infrastructure can only be an asset to your business venture. Sign up for Maya Business to access our comprehensive suite of disbursement, payment, and business banking solutions, all of which can make it both easier and more rewarding to manage your money.
With your new Maya Business account, you’ll be able to open a Maya Business Deposit account and use it as your settlement account. With an industry-leading 2.5% per annum interest rate, you’ll earn PHP 25,000 in interest per year on a PHP 1 million deposit. You can also send money to your partners and suppliers for free via InstaPay and PESONet, which means more savings that you can funnel into strategic initiatives if you so choose.
Signing up also qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months, which you can use to grow your business even further. Just use Maya as your primary processor for all wallet and card payments. The more you use our solutions, the better the loan offer will be.
Sign up for Maya Business today and all the benefits of Maya Business’s enterprise-class solutions can be yours instantly.