Do you have an accountant to help you with your business? Accountants do more than just help with the tax filing. But many small business owners, fail to realize the importance of having someone attend to these accounting requirements. In this article, we’ll discuss the top reasons to hire an accountant.
Did you know around 53 percent of small business owners do not have an accountant? And around 27 percent of these business owners track their finances with just a pen and paper.
What many business owners fail to realize is that this practice can lead to costly consequences down the line.
An astonishing 80 percent of businesses in the U.S. fail within the first 18 months? One of the common reasons for this is poor financial management, which is directly attributable to lamentable accounting practices.
Think about this. When you encounter problems with your car, do you service it by yourself or do you seek a professional mechanic? Chances are you pick the latter option. Why? Because a mechanic has the training and skill to spot and fix the potential issues and keep your car running smoothly.
The same logic applies to accountants. Accountants perform a thorough assessment of your finances and propose decisions to achieve and maintain a healthy and prosperous fiscal state for your business.
Here are the top reasons to hire an accountant.
- The downsides to DIY accounting.
Let’s face it. Do you really want to spend your nights and weekends on your accounting books and ledgers? Wouldn’t you rather be spending time with friends and family instead of burning the midnight oil?
When it comes to your finances, leave your DIY attitude behind. You’re better off hiring an accountant than doing all the work yourself.
When you hire a personal accountant, it’s more than just a luxury or lifestyle choice. It’s a business decision and a very sound one. You invest in a professional to help secure and maintain your finances at healthy levels. Don’t you think that’s money well spent?
Whether you hire an accountant online or in person, this investment offers many advantages.
First, you won’t fall behind with your tax filing and avoid trouble with the government. Second, you can timely file your claims for tax deductions and credits. Third, your accounting books will be organized and produce insightful reports about your financial results.
Lastly, you know you have reliable financial information that will help you make sound business decisions.
- Peace of mind.
Most business owners think hiring an accountant is unnecessary. Faced with a tight operational budget, many entrepreneurs make the mistake of trying to manage their own accounting books.
Did you know the benefits of hiring an accountant greatly outweigh the costs? Forget the issue of money.
Do you realize the time and effort you can save if you have an accountant? More importantly, you preserve your sanity by letting a professional manage your finances.
As a business owner, your primary focus should be on your business. Let an accountant engage your ledgers and books while you advance on your business goals.
- Navigate business challenges with a collaborative approach.
With an accountant as your financial advisor, you can assess the fiscal health of your business and navigate the hurdles as they occur in real time. You get the benefits that come from a collaborative approach as you can consult your accountant on any business decision that you make.
This allows you to calculate any potential implication or consequence that may arise with every significant move you make. By working with an accountant, you can get a macro view of your business.
- Accountants can see what many business owners don’t.
Could businesses fold because of poor business planning or do its owner simply lack the insight that an accounting professional possesses? Is it perhaps business owners are not looking harder or does an accountant see something that the owner doesn’t?
With an accountant, you can plan ahead for the future. You get sound advice based on the proper analysis of financial reports. This lets you examine the status of your business in relation to the decisions you are planning to make.
Wondering what’s the best time to acquire new inventory? Planning to make a big investment? Stay competitive by maintaining viability in your business. You can achieve all that with the help of an accountant.
- More Time.
The life of a business owner can be lonely. With a pile of invoices and receipts, it can be isolating. But it doesn’t have to be that way. You can free yourself from what’s keeping you apart from enjoying your life.
As they say, many hands make light work. Make your life as a business owner easier by partnering with an accountant.
Wondering when to hire an accountant? The need for an accountant arises when you start to run your business.
- Get a Big Picture of Your Business.
Wondering how an accountant help with your small business? The best way to have an objective look at the big picture is with the help of an accountant. This professional can help you take a step back and view your business from a high level.
- Start your business on the right foot.
Why spend countless hours addressing potential problems when you can have help? Get your business off on the right foot with an accountant.
Maximize your business by minimizing the usual growing pains such as cleaning up disorderly books or backtracking every transaction. Save yourself from the headaches that take your attention away from running your business.
With an accountant, you can increase your peace of mind as you focus on what’s important—your business.
When to Hire an Accountant
Growing a small business may entail a lot of challenges. But your life as a business owner can get a whole lot easier if you work with an accountant. From developing a business plan to submitting a loan application, each step would not be as challenging as it would if you have an accountant who will assist you with your finances.
If you’re like most small business owners, saving money is always a top priority. Naturally, one of the objections to hiring an accountant is the added cost. But you don’t have to employ an accountant full-time. You can hire one on a retainer basis.
Let’s say you need help with your taxes, which entails about 20 hours of work for the accountant. You can free up your mind and your time, allowing you to focus on other important matters.
We’ve already set out the top reasons to hire an accountant; thus, comes the question of when to hire an accountant. What are the moments during your life as a business owner that speaks to you on getting help with your financials, whether you are looking to hire a personal accountant on a full-time or part-time basis?
Here are some of the ideal occasions to have an accountant by your side.
- When you need to create a business plan
Are you looking to write a business plan? Do you plan to create financial projections that require reports to it? An accountant can help you.
If you are planning to make a business plan that’s realistic and in line with your business goals, an accountant can help you. With his or her professional training and skill, he or she can help you succeed and achieve your objectives.
When hiring an accountant, try not to focus on the money you spent. Rather, concentrate on the time and effort you saved (not to mention, your sanity preserved) due to the help provided.
With the right advice, your business plan will likely succeed. That’s one of the benefits of seeking professional help with the right financial knowledge.
- When you need advice on structuring your company
Configuring a business entails a lot of factors, and you can structure in many ways. You can set it up as a sole proprietorship or as a partnership. You can also organize your business as a corporation and more.
Each business structure has different legal implications. For instance, in a sole proprietorship, you may be held personally liable for all obligations incurred by the business. As a result, the creditors of the business may go after your possessions or personal belongings to satisfy the debt.
This is not the case in a corporate or limited liability company structure. As a general rule, the creditors of the business cannot go after your properties.
With an accountant, you will be advised on the ideal legal structure to assume for your business.
- When you need help dealing with your finances
One of the top reasons to hire an accountant is the professional help you get in dealing with your finances. When you need help tracking who owes you money or when you can’t remember how much to collect from a particular debtor, the accountant is there for you.
An accountant can help you measure your business metrics and determine whether you’ve exceeded your expenditures or hit your revenue marks. You get all the financial reports you need to help you understand the current fiscal situation of your business at a glance.
When you want easy and convenient monitoring of your finances, get a quick pulse of your business with the help of an accountant.
- When you are ready to delegate
As a small business owner, you tend to do all the things you need to run the company. From crafting a business strategy to determining the finances, you tend to have longer work hours.
When you delegate, you free up your time and your mind. It can be a liberating feeling to have other people to do the stuff that you usually perform.
So what’s stopping you from delegating the tasks to other people? Why feel the need to overwork? Is the reluctance fueled by a certain degree of mistrust that others may not meet your demands?
Learn to let go and have people handle the other aspects of running your business. When you do, you won’t feel stressed. A good place to start is to delegate your financial affairs with an accountant.
This lets you focus on the other aspects of the company. What’s more, the accountant has the necessary training and skill to perform the job.
- When you want to save time and, ultimately, save your business
Most small business owners think hiring an accountant is nothing but an added expenditure; a waste of limited resources. But is it?
If you look at the current trend, many businesses fold within two years because of poor financial management. So would you rather save on a couple of hundred bucks or would you rather ensure your company’s healthy and prosperous state?
With an accountant, you save time for yourself, allowing you to devote your focus and attention on other important aspects of the business. This is one of the most apparent benefits.
But did you know you can ultimately save your company from financial mistakes if you hire an accountant? With an accountant’s trained eye, nothing is amiss, and you can spot potential problems before they actually happen.
- When you want your business to be fraud-free
No one is going to cheat you with your money. With an accountant as your financial advisor, you will see where every dollar and penny is. You get a bird’s eye view of everything.
If you’ve been duped by your debtors or got cheated by your creditors, you will be in good hands with an accountant.
Save yourself from the frustration of doing your own books. Let LYFE Accounting handle your accounting needs. Visit our website to learn more about us. https://lyfeaccounting.com/contact-us