I was making up to $20,000 a month when I was 13 - then I made this big mistake.

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I was making between $10,000 and $20,000 a month when I was thirteen. Quite an achievement for someone so young. Yet despite this, I made one of the worst decisions of my life that had a huge impact for years: I decided to do my own bookkeeping and accounts.

Very bad idea. Not because I was a teenager but because I had neither experience nor expertise. Even if I did, it would still have been a huge risk because I was too close to everything. I didn't have the ability to zoom out and make rational decisions. It's not a mistake I made, however, and it's not a mistake reserved for young entrepreneurs. I see successful business owners of all ages and types. This is understandable because the costs associated with hiring an accountant or accountant are pretty much the same whether you make $5,000 a month or $50,000. Once you reach a certain level, it makes sense to hire someone. It's an easy decision. Yet, until you reach that level, you're bound to ask, "Can't I do it myself?"

Why you shouldn't do your own bookkeeping and accounts

No matter what level your business is, one of the first things you should consider outsourcing is your bookkeeping and regular accounts (at a minimum). For starters, it's important to keep an organized record of your finances for tax purposes. Unless you know what you're doing, you run the risk of getting into big trouble if you ever get audited.

However, it goes further than that. As a business owner, your job is to work on your business. You need to appreciate the finer details of what's going on inside, but also have the ability to zoom out and focus on the big picture. With someone tracking, recording, and organizing your finances, you have access to what you need when you need it. Whereas if you're the one taking care of all this, you run the risk of missing something or simply forgetting about it.

So while it may seem easier to manage the finances yourself and, on the surface, cheaper, you need to get past that mindset and go after some essential recruits.

Related: Do This to Make Your Money Work for You in 2022 and Beyond

The Five Financial People You Need to Hire

Over the years, I've learned that there are five essential financial people you need in your business (and in life in general). You don't need all of them at first and some only become important later. Yet at some point you have to consider all five:

1. Accountant

For most companies, this is the first finance person you hire. Your accountant tracks what comes in and goes out of your business. They don't make decisions, but their work allows you to make better ones. Hiring someone to do this not only saves you time, but also keeps more accurate records and accountability for your money.

2. Accountant

With a solid accountant, you gather all the information your accountant needs to give you the right monthly, quarterly and annual overviews of your business. Access to this information allows you to make better decisions. Yet this person also makes sure you keep everything serious, paying for what you need and when.

3. Tax planner

The first two hires are essential. The sooner you find them, the better. Your tax planner is a little different because it only makes sense when you reach a certain level ($250,000+ per year). This person is important because your accountant is probably too risk averse. They don't want to complicate their lives and they don't want to put you in a potentially awkward situation. But as an entrepreneur, you have to take risks. This is where a tax planner comes in because it helps you exploit...