Apart from filing taxes, there is a lot more that an accounting firm can do for your business. Oftentimes, business owners are not able to keep track of their finances throughout the year. This is one of the many reasons why many small businesses are not able to make it past the first year.
A number of business owners do not even have a distinction between their money and money belonging to the business. This is what happens when you DIY on managing your business finances. Shockingly, many business owners simply use pen and paper to make a record of their finances with regard to debits and credits.
On the one hand, some businesses do alright with this type of arrangement. On the other hand, a large number of them fail for a number of reasons. The vast knowledge and experience a well established accountant can bring to your business cannot be overemphasised. Here are a few reasons why you need an accountant for your business:
- Identifying Your Deductions
An accountant will help you to identify how you can maximize on your deductions throughout the year. They will advise you on how you can make strategic decisions for your mandatory end-year deductions. On your own, you may not remember to track and account for issues such as out-of-pocket expenses and depreciation.
- You Do Not Want an Audit!
Any business owner will break out into a cold sweat at the prospect of getting a visit from the auditors. It is unfortunate that many business owners think about hiring an accountant after an audit so they can come in and fix things.
With the guidance of an experienced accountant, you can avoid the auditor altogether. Some of the errors that will bring the auditors to your office include too many errors on the tax forms, excessive write-offs and being too generous. An accountant will ensure that these issues do not occur in the first place.
- You Will Save Time and Money
You are probably wondering what money you can hope to save if you are paying an accountant. If you factor in the time and effort needed to manage your finances personally, you will consider the accountant’s fee money well spent. Think of the money you could lose due to poor financial decisions for instance. Furthermore, that time and energy could be spent in running and expanding your business. It therefore makes sense to hire an accountant to get the finance management issues off your shoulders as you concentrate on running and building your enterprise.
- Get Help with Budgeting and Cash Flow
Having the time or even the foresight to calculate the consequences of making some major financial decisions is not always possible. An accountant can guide you in making decisions based on available data and also be your consultant with regard to any financial decisions you want to make.
- Future Plans
An accountant will come in handy when you are making future plans for your business. You can pore through your past business reports together and come up with a way forward as far as the seasonality of the business is concerned.
You will be making the work of running your business easier by hiring a professional who can take a lot of the financial stress off your back. That way, you can make time to concentrate on other aspects of your business.