Four Reasons Every Small Business Should Use An Accountant
If you run a small business, you may not have the funds to hire an accountant full-time. But you can still contract with an accountant and business advisory specialist who is independently employed and works for you part-time, under contract. Rather than wading through numerous financial documents and spreadsheets on your own, there are four key benefits to hiring an accountant for your small business.
1. You'll receive advice for the future.
Accountants have typically seen the books and income of many businesses. Based on what they see in your financial documents, they should be able to give you business advice for the future. For example, they may tell you that you are not charging enough and need to raise your prices to make a profit. Or they may tell you that you are spending too much on materials and need to look for a cheaper source. By following your accountant's advice, you can prevent big business catastrophes later on.
2. You'll reduce your risk of an audit.
Filing business taxes is a bit more challenging than filing personal taxes. If you do not file correctly, you will almost certainly be audited, which could result in you having to scramble and pay a large tax bill (and perhaps a fine) that you are unprepared for. When you have an accountant file your taxes, you can be assured they will do a good job. They're professionals. If you do get audited, they will handle the ins and outs of the matter, so your day-to-day operations are not impacted.
3. You'll have more time.
When you own a business, you never feel like there's enough time in the day. By passing off all of the financial obligations to an accountant, you free up a lot of time and mental energy. You can then focus on marketing, customer service, and other aspects of actually growing your business, which will ultimately bring in more funds.
4. You'll have someone keeping your spending habits in check.
Even when it's your business's money, it's all too easy to overspend. There's no boss to run your purchases by! You might buy new gear or new shirts without really knowing whether your business can afford it, for example. An accountant can oversee your spending habit and tell you whether or not you truly have the funds to make purchases you want to make. This can help prevent financial calamity in the future and can also make sure you truly need the things you buy.