For small businesses keeping track of their expenses, it may seem like it’d be easier to outsource accounting and bookkeeping.
Yet in a new survey from Intuit, 81 per cent of Canadian small to mid-sized businesses (SMBs) say they actually manage their books internally – and for 41 per cent of those SMBs, that’s a task reserved for the business owner, while 26 per cent say it’s the job of the internal accountant. Sixteen per cent delegate that task to the office manager, while 15 per cent have given it to some member of senior management.
The main reason for DIY accounting? As might be expected, 96 per cent say it was because it was more convenient, while 94 per cent say it’s more cost-effective to do bookkeeping in-house. Another 77 per cent say it’s safer, while 69 per cent say they don’t see any benefits to getting an external source to do the work.
In a new survey, Intuit polled about 700 managers or the equivalent working at SMBs, who reported being at least somewhat familiar” with how their companies do bookkeeping. About a third of respondents said their companies’ revenue was below $500,000 a year, though about 19 per cent were in the $500,000 to $1 million range, while 16 per cent made between $1 million and $3 million.
For those keeping their own books in order, 73 per cent are using accounting software. However, 14 per cent are using Excel or another spreadsheet program, while six per cent are still using paper ledgers. About three per cent only have files and receipts, while two per cent aren’t using any of these options.
Among those who are using software, 95 per cent said they were satisfied with their solution. They bought their software based on a number of criteria, but for 41 per cent, the top reason was that it came recommended by a professional.