As a small business owner you probably thrive in a DIY environment, but the more hats you wear the less you’ll accomplish successfully. Accounting is one of the most important areas for keeping your company profitable, as you start out and your company grows software can only take you so far, accountants can help your company move forward. An accountant is an invaluable asset that helps not only with balancing books and tax returns but with long-term tax planning, business planning, marketing and other aspects vital to your business’s financial health.
Why Your Small Business Need an Accountant
- There are inevitably questions that come up during the year and you need to have a relationship with someone who knows your business and can offer advice when you have questions your business is in the startup phase there are many things to think about when you’re just starting out like business structure, business plan, bank accounts, government regulations location and financing you might think it is too early to hire an accountant but the way you set up your operations can have a serious impact on your future success. Check here!
- An accountant can help you determine the most appropriate business structure, analyze your business plan for financial compatibility, and assist you with making sound financial decisions throughout the startup process so you don’t have to spend more money to correct mistakes later.
- Your business has employees in the first few years of operation you may not feel you have enough work for an accountant, the truth though is that an accountant will have the specialized knowledge to make your money work for you even though you don’t have a huge workforce the accountant can help ensure employees and independent contractors are classified correctly.
- Oversee payroll and payment processes and create appropriate timelines for sending W2s and 1099s your lender requests a financial statement the Small Business Administration reports that small businesses borrowed over 6 billion dollars last year at some point your business will probably need additional funding whether it’s for expansion, new equipment, purchasing property or even establishing an emergency fund, before you approach a lender having an accountant prepare a financial statement can increase your chances of approval.
- Your budget is falling short; according to the Bureau of Labor Statistics about half of all businesses will fail within five years of opening although there are many factors related to failure not meeting budget goals can decrease the chances of your business survival having an accountant on-hand to analyze your budget assists in making changes and catch errors will help you make sure your budget is on target.
For success questions to ask yourself before hiring an accountant; does your business planning match your financial forecast, have you read the tax code, do you have enough time to take care of all the accounting duties yourself, are you sure your employees are classified correctly, do you know what needs to be in a financial statement, and is your budget working for you. If you answered no to any of these questions you can benefit from hiring an accountant. For more details read our article: http://www.southcountychamber.net/difference-bookkeeping-accounting/