With all the sophisticated bookkeeping, accounting and tax preparation software out there, you might think you don’t need to hire an accountant for your start-up small- or medium-sized enterprise. Think again.
An accountant is not a superfluous business expense. An experienced professional accountant who understands how to run a business in today’s economic environment can be a great asset to your business. A good accountant can provide essential support in many areas, including tax planning, strategic approaches, growth and expansion strategies, budgeting, financial forecasting, evaluating new business ideas, and, of course, keeping your financial records in order.
Although hiring an accountant may cost you up front, you’ll likely recoup the investment many times over. A good accountant can often find numerous ways for you to shave expenses, structure transactions, time payments and save money. Moreover, many accountants offer fixed or scalable fee structures, and some are willing to arrange their fee structures according to your cash-flow circumstances.
There are many benefits to using a professional accountant. The following are some examples:
Tax Savings: A qualified accountant possesses knowledge, training and experience in tax planning and tax strategies as well as in tax preparation. Often they can recommend legitimate ways to reduce your tax obligations.
Improved Profitability: In addition to overseeing the accounts, an accountant can assist you with budgeting and advise you on forecasting cash flow. You may be able to improve cash flow through better management of inventories, payables and receivables. As your business grows, your accountant may suggest ways to manage or direct growth to maximize profitability.
Up-to-date and Accurate Accounts: Timely, accurate financial information is crucial for all businesses. Knowing where you stand financially will enable you to understand your business thoroughly and optimize your business performance through economic cycles. This is especially critical if you are looking to expand, diversify or add new lines of business.
Expert Business Advice: Whether you’ve just started out or are on a growth trajectory, an accountant with knowledge of best practices and business conventions across a spectrum of industries is a source of quality professional advice.
Referrals and Business Networks: Don’t underestimate the value of being part of an accountant’s business network. Accountants who work with other small businesses can keep you abreast of trends and issues and also refer clients and vendors to your company.
Stay Ahead of the Curve: A savvy accountant will be aware of current legislation affecting small businesses and will make sure that you comply with legal requirements in an appropriate, timely and efficient way.
Spend Your Time on What’s Important: Financial matters can be frustrating and time-consuming. Delegating accounting and bookkeeping tasks to a pro frees up your time so that you can concentrate on making your business successful.
Gain Peace of Mind: Knowing you have a great accountant on your team will help you sleep better at night, secure in the knowledge that your business finances are in good hands.