Why You Should I Hire an Accountant For a Small Company?
Why You Should I Hire an Accountant For a Small Company? Your physician is your go-to expert for your health and wellness. You turn to your mechanic to keep your car in top condition. But why Hire an Accountant? You should as a small business owner turn to your Accountants when you need strategic or operational advice about running their businesses?
If you’ve built a small business from the ground up, you probably know your industry, customers, and products or services like the back of your hand. When it comes to the ins and outs of taxes, accounting, and finance, however, it never hurts to have an experienced professional to turn to for guidance. A growing number of accountants are also taking care of things such as cash flow projections, invoicing. Ultimately, many of them are taking on CFO-like roles.
Why You Should I Hire an Accountant For a Small Company? Here’s a closer look at how small business owners can leverage their relationships with accountants, and what accountants can mean for their businesses.
Accountant an Untapped Resource
When Forbes surveyed over 1,000 small business owners in 2019, 87% said their accountant was a trusted advisor who they could turn to for a wide range of business advice. They tended to choose their accountants for advice over everyone else (including their attorneys, financial planners, and family members).
However, only 30% of small business owners chose to bring in an accountant to help them out, even though an accountants’ advice appears to be more important than ever. For example, when it came to applying for Covid-19-related governmental funding, the 2020 State of Small Business Research found that 73% of small business owners with an accountant said their accountant’s advice was important in the application process.
Why You Should I Hire an Accountant For a Small Company? A small company start-up needs help to avoid costly mistakes. A Clutch survey of small business owners shows that more than one-third of small businesses list unforeseen expenses as their top financial challenge, followed by the mixing of business and personal finances and the inability to receive payments on time. One-fourth of small businesses are only “somewhat confident” in their tax preparation skills.
These financial challenges could be addressed with the help of an accountant. In the long run, the amount of money saved through avoiding mistakes and fines outweighs the cost of hiring outside help. You’ll also be better prepared when the unexpected does strike.
How An Accountant Can Help Your Business
When you think of the services an accountant can provide, it’s likely that tax filings and bookkeeping immediately come to mind. However, because small business owners are starting to expect a wider range of services, it’s becoming more common for accountants to provide a variety of financial and advisory services to help you improve profitability and scale your business. That is why Hire an Accountant is a critical decision.
Small business owners can expect their accountants to help with:
- Choosing a business structure (i.e., sole proprietorship, LLC): Selecting the business structure that’s right for you is important. It impacts how much you pay in taxes, the paperwork you need to file, and your liability. If you’re looking to convert to a different business structure, it could result in tax consequences and other complications.
- Budgeting, forecasting, and cash flow management: Developing cash flow projections and optimizing cash flow by analyzing your business spend and rebalancing your budget and debts helps set you on the path to success.
- Payroll processing: Payroll can be a complex and challenging part of running your business, and the fines and potential liabilities associated with getting it wrong can be significant. Payroll deductions can get complicated because each employee may have multiple different withholdings depending on what they opt for.
- Tax planning: There are several tax planning strategies — such as deferring or accelerating income, accelerating expenses or holding off, or establishing a retirement account — that can help you lower your tax liabilities and save you money.
I also recommend turning to your accountant for:
- Business consulting.
- Accounts payable and accounts receivable.
- Employee benefits
- Accounting Software recommendations.
So, if you find back-office finance and accounting functions are consuming too much of your time and causing stress and you could use an informed advisor at your side, ask yourself Why You Should I Hire an Accountant For a Small Company? Seeking out the help of an accountant can be a great way to help you navigate business challenges and avoid costly mishaps. Now might be the perfect time to make a change so you can focus more energy on what you enjoy most: serving your customers, building your team, and growing your business.
Why Hire an Accountant?
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