Startup owners may be tempted to cut corners by managing their accounting personally. However, unless you’re somebody who has accounting and tax experience, we don’t recommend this approach. You should either hire a part-time or full-time accountant or outsource your accounting to a CPA.
Hiring is typically more expensive than outsourcing because you may need to provide benefits to your employee. With outsourcing, you can pay somebody as a contractor to set up your accounting system, analyze your financials, and provide you with guidance about your business and its growth.
We recommend outsourcing for most startups. Not only is it the more affordable option, but it’s always helpful to have a fresh set of eyes on your finances. As a business owner, it’s easy to lose perspective and miss things that would be obvious to a trained accountant.