The Undeniable Benefits of Hiring a Small Business Accountant

For many people, small business ownership is the American dream. It also comes with a significant number of risks.

If you’re a small business owner, chances are you’re tight on time, short on money, and in a constant state of low-level panic. You can’t help it. The business is basically your child and your life is devoted to keeping it alive.

One of the best ways to save time and money as a small business owner is to hire a small business accountant. They’ll minimize financial risks to your company and handle the complicated money matters you’d rather avoid.

Don’t just run a business, run a smart business. Here’s why you need to hire a small business accountant soon.

What Are the Benefits of Hiring a Small Business Accountant?

What will a small business accountant actually do for your company? Quite a lot, actually. They are, after all, experts at what they do.

Here is a mere taste of the top ten ways hiring an accountant will benefit you as a small business owner.

Accountants Can Help You Craft a Business Plan

An accountant can help you create an effective plan for your business. They will make sure you have all the necessary financial aspects and details of your business plan worked out and documented properly.

This is not only helpful if you are just starting to conceptualize your business. It’s helpful if you’ve got your business off the ground and even beyond the early stages.

An effective business plan is imperative when you start a business as well as when you endeavor to grow your business. Finances naturally play a very big role in the success of a business plan.

Having a professional accountant on your team will only prove to benefit the financial aspects of your approach to business.

Accountants Find Innovative Solutions to Save Your Business Money

Many business owners put off hiring a small business accountant because they perceive that it will be an added and unnecessary expenditure. In reality, bringing in a professional accountant will help you cut costs.

One of the most important facets of an accountant’s job is to stay up-to-date and current on everything related to the financial well-being of your business. They are primed to notice where unnecessary expenditures occur.

Small business ownership is incredibly complicated and multifaceted. It is very easy for a small business owner to lose track of regular payments to lenders and suppliers or fail to notice every single minute expenditure.

An accountant, on the other hand, will review and keep track of each and every dollar that goes in and out of your company. They are vigilant about tracking finances. 

That means they will notice where you are overpaying or spending money you don’t need to spend. They will identify wasteful expenditures and advise you on ways to save money and make your business cost-effective.

This is a huge time saver for a small business owner. While your accountant is focused on the financial side of the business, you have the time and energy to focus on expanding your business.

An Accountant Frees Up Your Time

If you’re feeling the strain of all the responsibilities that come along with small business ownership, a great way to take a huge chunk of that off your plate is to hire a small business accountant.

You probably didn’t start a small business in order to spend the majority of your time handling bookkeeping and strategizing for tax season. If that’s how you want to spend your time, you should have become an accountant!

One of the best accountant benefits is that you don’t have to fill up your time managing finances. You get to focus on all of the other myriad aspects of being a small business owner.

In most cases, handling your business’s accounting in-house is not the most efficient way to use your time and resources. Outsourced accounting is the most effective and viable alternative.

Your time is valuable. Spend it doing what you’re good at – managing your growing business!

Hiring An Accountant Adds a Tax Expert To Your Team

Most small business owners struggle to find the time in their workday to prepare and file their taxes come tax season. Many end up doing this work after hours and cutting into their private life.

Why sacrifice your personal time, your sleep, and your energy to the stress of handling your own taxes? When you’re just starting a business you hardly have any free time anyway.

In addition, making mistakes on a tax return has led to the demise of many small businesses. Filing taxes for your business is not at all the same process as filing your personal tax return.

Tax codes change all of the time. Even when they aren’t changing, they are confusing and overwhelming for most business owners. You don’t want to risk the consequences of doing your business tax filing incorrectly.

That’s yet another reason why hiring a small business accountant can save you time, money, and potentially save your small business from bankruptcy.

When you have a trusted accountant on your team you also have an experienced tax expert. They will make sure you file your taxes correctly the first time around.

Accountants also make sure you maximize your tax return by claiming all of the things you are eligible to claim. An accountant is also a great way to improve your chances of avoiding an audit.

If you are audited, it will be very helpful to have an accountant on your team who is familiar with your business, has organized all of your receipts, and recorded your sales and expenditures.

Accountants Organize Your Business Finances

Keeping a close eye on your finances is key to small business ownership. But you don’t have time to do that when you’re running a business. Hiring an accountant will ensure all of your accounts are in order.

Accountants are great at establishing a system for organizing receipts, invoices, and any of the other crucial financial documents related to the running of your small business.

Your accountant will maintain and organize your business’s financial accounts throughout the year. They will also help you to understand when your business is financially “healthy” and when it could use a wellness shot.

An Accountant Manages Revenue Records

Does your business provide goods and services? If so, the only way you can get paid for those sales is to invoice your clients. Invoicing isn’t necessarily a difficult task, but it is easily forgotten or overlooked.

An accountant will keep track of all of your business invoices and payments for you, so you don’t have to worry if you’ve forgotten to charge someone for your services.

When you have an accountant to handle your revenue records, you can rest assured they will send invoices on time and keep track of all payments.

An accountant can also follow up with clients regarding outstanding invoices and missing payments. The easiest way to ensure you are earning revenue consistently is to hire an accountant to assist with billing.

Hiring an Accountant Boosts Your Professional Image

As a small business owner, it can be easy to overlook or forget certain crucial elements of running a successful business.

You have a lot on your plate, especially in the early years, and it’s easy for things to slip through the cracks when you don’t have enough help. Maybe you’ve had trouble paying your invoices on time.

Perhaps the problem is that you can’t seem to keep up with the never-ending back-and-forth emails to vendors and clients. Whatever your particular shortcoming may be, it puts a strain on your business’s image.

A small business accountant is a great way to improve your reputation and build your professional image. They make sure all of the financial aspects of your business are organized, streamlined, and taken off your plate.

That way you can focus on more important details and the parts of running a business you actually enjoy.

Accountants Handle Complex Accounting Tasks

Anyone who thinks accounting is a simple task when it comes to small business ownership is kidding themselves. Accountants go through years of education, training, and certification.

While some accounting tasks may be simple, overall it is an incredibly complicated job. It is very rare that a small business owner has the same expanse of knowledge of accounting practices as a certified accountant.

Why risk making basic accounting errors that could risk tanking your business when you can hire a small business accountant who can handle the most complex of accounting problems and ensure things are done correctly?

Accountants Can Assist With Critical Business Decisions

Small business ownership requires making many important, crucial, and consequential decisions every day. It is a waste of time to make a business decision without taking into account the financial consequences.

You want to be able to lean on the advice and knowledge of your accountant. That will ensure you make sound business decisions that improve the profitability and functioning of your business.

Hiring an Accountant Can Streamline Business Growth

In order for your business to blossom and grow, you need to be firing on all cylinders. Accountants are a major part of what ensures the financial well-being of a company.

An accountant has a hand in everything from day-to-day transactions to critical decision-making processes. Possessing a well-oiled accounting department will set your business on the path to success.

What Is the Difference Between an Accountant and a Bookkeeper?

Once you’ve decided to hire a small business accountant, you’ll begin to interview potential candidates. Certainly, you’ll want to approach this in a way that will be most advantageous to your business.

With that in mind, you need to understand the differences between an accountant and a bookkeeper.

These two professions do have some overlapping responsibilities. However, they are distinctly different in many ways, too.

Bookkeeping

A bookkeeper’s job is to process and record daily business transactions. It is integral to the functioning of a successful business that the business’s financial information gets recorded in a consistent manner.

The specific duties of a bookkeeper include recording financial transactions, posting debits and credits, and preparing financial statements. In addition, bookkeepers produce invoices and manage payroll.

Bookkeepers also maintain and balance subsidiaries, general ledgers, and historical accounts.

One of the main parts of bookkeeping is the maintenance of a general ledger. This is a document in which a bookkeeper can record sale and expense receipts.

A bookkeeper may keep a ledger on a computer spreadsheet, using specialized software, or using the old school method of pen and paper. Some bookkeeping systems are complex, while others are quite simple.

How complex a bookkeeping system needs to be will depend on the size of the business. If your business handles a high number of daily, weekly, or monthly transactions, you may require a more complex system.

Accounting

Accounting is a high-level financial process. It is more subjective than the work of a bookkeeper. An accountant uses financial data to produce financial models.

The job of an accountant includes recording expenses, including those that have occurred but have not yet been recorded in the process of bookkeeping. The job also includes analyzing the cost of operations.

Accountants are responsible for reviewing company financial statements, completing income tax returns, and advising the owner of the business on the impact of financial decisions.

In fact, one of the most important parts of the job of an accountant is to help business owners make good business decisions. They help owners become aware of their cash flow and understand their profitability.

Business owners also enjoy the benefits of using an accountant’s expertise when it comes to strategic tax planning, filing taxes, and forecasting. Accountants are very helpful in explaining the big picture of the business.

Hire a Small Business Accountant

If you are a small business owner, it is in your best interest to hire a small business accountant. An accountant will save you time and money so you can focus on growing your business. They’ll also do your taxes for you.

Don’t risk bankrupting your business by thinking hiring an accountant is an unnecessary expense. Hiring an accountant will be the best decision you make all year.

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