You probably go to the doctor when you’ve got a cough or unexplained pain in your abdomen. You might also go to an attorney when you need to have an expert opinion on contract details. In the same way, you get yourself an accountant when you need operational or strategic advice when it comes to financial issues concerning your small business.
You may be great at handling customers, and you likely know the ins and outs of your specific industry. However, there’s a high likelihood that you aren’t the world’s best at doing your company’s taxes or crunching your business’s financial numbers. That’s why hiring an accountant for a small business to take care of those things is a wise decision.
Plus, the truth is that accountants these days are doing more than business taxes. They’re also taking on projects for companies like HR, invoicing, and handling cash-flow projections. With that in mind, here are some excellent reasons why your small business should have an accountant.
To be honest, unless you have the proper education, you don’t have the right knowledge to do an accountant’s job. Sure, you could watch some YouTube tutorials, and you might even get the hang of an aspect or two. However, when you know that fully trained accountants take at least five years to acquire their degree, you might understand why a few hours of online training aren’t enough to bring you up to speed.
You hire an accountant for the same reason that you hire a professional mechanic to work on your car. You don’t have the expertise — but the mechanic does.
In many cases, it’s a good idea to hire an accountant before you ever start your business. If you do, you can ensure that any financial information you include in your business plan is 100% accurate and professionally prepared. Remember that sort of thing can be more than helpful when attempting to attract investors (or lenders from the bank).
After you’ve launched your business, an accountant can help set up an accounting-management system, a business account, help you conduct financially sound investments, and more.
By now, you’ll probably agree that hiring an accountant is an intelligent choice. However, many small-business owners look at hiring one as just another expense. Of course, that’s a completely wrong mindset to have. You might pay an accountant’s fee, but their services can save you far more than you’re paying them. In other words, they’re worth the fees they receive. As a smart entrepreneur, you should never begrudge a professional’s asking price when you know you’ll receive a significant return on your investment.
Accountants can save you tons by lessening the risk that you’ll make serious and costly errors in your financial and tax records. They help save money by giving you sound business advice and providing information that can help you make cost-effective decisions.
One of your greatest assets is time. It’s also something you can’t get back. Therefore, you must be wise with how you spend it. As a business owner, you want to make sure that your time is filled with productive activities, which you prioritize. If you try to do all your company’s accounting yourself, you’re not spending your time wisely.
Someone else can do the taxes and financials better than you can. When you hire an accountant, they skillfully handle all of that while you spend your time doing what you do best.
An accountant can also help you make smart business decisions. For instance, say you want to renegotiate your lease or draw up a contract with a vendor. Your accountant can save you from shady deals and bad financial decisions. Plus, they can help manage payroll accounts and even collect money from clients who have proven themselves difficult.
Going back to the issue of taxes, which is what most people think about when hiring an accountant, they’ll help make sure you’re in compliance with all major tax laws. If you get audited, your accountant can help ensure that you get a qualified audit rating that could allow you to get bank loans should the need arise.
Remember that a vast majority of businesses fail within months of beginning. Many fail because their financial planning was subpar. In these cases, it’s almost a surety that they didn’t hire an accountant to help with the financial part of things. These business owners mistakenly thought they could do it all themselves. Don’t let that be you.
Additionally, if you’re already in business and discovering that doing all the accounting and back-office finance functions take all your time and stresses you out, just stop. Seek out a professional accountant who can take that burden off your hands. After all, it’s what they went to school for.
Just make sure that you ask for recommendations from other business owners or trusted friends. You can also often get good suggestions from your attorney.
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