Entrepreneurs should not do their own bookkeeping unless they have the right resources, particularly in terms of time and staff.
Deciding whether bookkeeping should be done internally or externally by an expert depends on several factors. Entrepreneurs should ask themselves the following questions:
- Is there someone in the company who has the right skills and enough contacts who is capable of constant improvement?
- Does the person have enough time, energy and desire to manage the company's bookkeeping, especially during the start-up phase?
- Or would it be best to focus on the company's main area of business?
It is possible, and even advantageous, to do both by recording charges to the accounts internally—an important but less challenging task—while delegating more challenging tasks, such as closing of accounts, tax forms, VAT and payroll accounting, to an external fiduciary.
Choosing a fiduciary is an important decision. A relationship of trust needs to be established, given that the fiduciary will have privileged access to company records and can offer useful advice. In general, a long-lasting business relationship will develop. Look for fiduciaries that belong to a professional association, as this is an important sign of quality.