Could Your Small Business Benefit From an Accountant?
Does it seem like an unusual question, or have you actually thought that you might need an accountant to help your small business grow? Some entrepreneurs think they can do it themselves, don’t want to invest the money, or believe that having an accountant is only for the “big” guys. That might be true if you’re just a one person enterprise with a limited amount of financial transactions, but as your business grows your support needs grow along with it.
Perhaps you utilize a payroll service or a tax preparer but, if you find yourself spending more time on bookkeeping and tax matters than customer service or sales, it might be time to consider hiring an accountant. Here are some of the benefits your small business might realize by bringing in the services of a professional:
- Frees Up More Time for You: As the business owner, you already have plenty to do on your plate. Think about what an hour of your time is worth if you are able to spend it solely on growing your business. That amount is surely more than what it would cost to hire an outside accountant. Make smart decisions about the value of your time, and learn to delegate specific tasks as needed.
- Keeps You in Line With the Law: Unless you majored in accounting in college it is difficult to get a complete understanding of the complicated tax laws. Even if you do have a basic knowledge, they are constantly changing and you may be out of compliance without even realizing it. An accountant is required to have a certain level of education and to take continuing education credits to keep up with changes in the tax laws.
- Saves You Money: You might actually be costing your business money by doing it yourself, without a professional’s help. Do you have a full understanding of capital expenses, business expenses, depreciation and other valid deductions that could be used to lower your annual tax bill? If not, an accountant may be able to save you more than their actual fee.
- Provides an Objective Opinion: You may think your business is going great guns, but an accountant can give you an honest assessment of where you actually stand. He or she can analyze cash flow, past due receivables, debt load, and projected income to help you determine whether you are making a profit and how long your business can continue to operate. This can help you make decisions about changes you might need to make in the way you handle the financial end of your company.
- Helps With Growth Needs: When your business gets to a certain point, you may decide that you need to obtain a loan or line of credit, or that you might want to look for investors or a business partner. All of these activities require a detailed financial history and financial statements to help outsiders make decisions about the health of your business.