Small businesses have a huge impact on the health of our economy.
In fact, small businesses – defined as businesses with under 500 employees – make up 99.7 percent of all businesses in the US. And, those businesses provide employment for around half of all US workers.
Running a small business is extremely rewarding. But, it can come with a fair amount of stress and uncertainty, often as a result of accounting issues and regulatory burdens.
A small business accountant can help you with these problems. And, not only will an accountant help to improve the running of your small business, but you’ll also save money and benefit from a lighter workload.
Read on to find out the top ten benefits of hiring an accountant for your small business.
1. Establish a Healthy Accounting System
The main reason that 50 percent of businesses fail in their first five years is due to poor financial management.
Make sure your business gets off to a great start by hiring an accountant in the early stages of your business.
You might not think you need an accountant yet, but this is exactly why you do. This way, your accountant can establish a healthy accounting system which will be much easier to maintain.
And, you won’t have to resort to cleaning up sloppy finances which only serve to highlight past mistakes that could have been avoided. As they say, prevention is better than cure.
2. Track Numbers
With modern software, it’s easy to generate financial reports. But, having an accountant’s expert eyes keep track of the numbers on those reports is invaluable.
With a dedicated and trained accountant tracking and analyzing your business figures, you’ll gain a greater understanding of your business figures, including how and when to act on them.
3. Make Informed Decisions
But, accountants aren’t just number-crunchers.
Accountants are financial experts with intricate knowledge of everything from takeover bids to payroll queries. By analyzing your business figures, your accountant can offer you informed advice to help the success of your business.
If you’re considering important changes, such as hiring new staff or running a new marketing campaign, ask your accountant about the potential financial implications first.
Because, the better informed you are, the better your decisions.
4. Manage Cash Flow
A healthy business relies on a healthy cash flow.
By keeping a trained eye on your financial reports, your accountant has the best view to let you know what the potential red flags are when it comes to cash flow.
Through consistent financial analysis, your accountant will be able to anticipate possible cash-flow problems before they occur, as a result of issues such as slow-paying customers or a sudden increase in overtime.
And, with your accountant’s insights to guide you, you’ll be able to adjust accordingly so as to avoid unexpected surprises.
5. Meet Deadlines
It can often seem like small business owners are constantly having to contend with more regulatory burdens.
Depending on what business you’re in, there are several IRS deadlines to meet each month of the year. And, each of those comes with a hefty fine if you end up filing late.
Having a small business tax accountant to take care of these deadlines means that your business will always keep on top of what needs to be filed and when. And, not only will you avoid paying unnecessary fines, but you’ll also keep the IRS happy.
6. Stay Updated
Tax rules, state and federal laws and local regulations all change often. And these changes can impact your business.
Knowing the financial implications of these changes is a key part of small business accounting. By hiring an accountant, you’ll ensure that your business practices are always in line with the current regulations.
Your accountant will also be able to keep you up-to-date with changes that could benefit your business too, such as information about tax deductions or money-saving opportunities.
7. Oversee Payroll
Payroll expertise comes as second-nature to accountants, who are used to spotting and correcting the same errors time and time again.
Classifying employees, knowing when exemptions apply and when not, and overtime rates are all headaches that busy business owners can often slip up on.
Having an accountant on your team means you’ll always be sure that your employees are paid correctly.
8. Manage Growth
Small businesses can often suffer when they attempt to grow before they’re ready.
If you’re considering changes, such as expanding to new locations or adding to your product line, you need to have a clear idea of the wider implications of these changes.
With access to your business figures as well as expert financial knowledge, your accountant will be able to help you manage growth successfully and avoid the potential disasters of over-expansion.
9. Avoid Financial Mistakes
By knowing your business numbers inside out, your accountant will always be in the best position to advise you when it comes to navigating your business forward.
Sometimes, that can mean encouraging you to make positive changes in order to grow and expand. Other times, that can mean knowing when to help you avoid making financial mistakes. Remember, you’ll be much less likely to put a business foot wrong with expert help on your side.
10. Prepare for An Audit
Having an accounting system in place and an accounts expert who already knows your books inside out will be invaluable if you’re faced with an audit.
Keeping a business in compliance is difficult, especially in the face of constantly-changing tax rules. By hiring an accountant, you’ll be sure that your business is in compliance. And, as a result, you’ll save yourself from hours of labor as well as the cost of paying out expensive fines.
Reasons to Hire a Small Business Accountant
As this long list of benefits shows, an accountant is a crucial asset to any small business.
From assisting in the day-to-day running of a business to providing informed financial advice, it’s clear that you really need to hire a small business accountant.
Contact us for personalized small business advice. And, don’t forget to sign up to our mailing list to receive all the latest updates and information!