99.7 percent of all US businesses are categorized as small businesses (less than 500 employees).
Small businesses are the lifeblood of our economy and provide jobs for approximately half all of employees in the US.
While small business owners live an incredibly rewarding life, they also have their own share of stresses.
The main reason why most small businesses fail is cash flow issues. And one of the biggest problems most small business owners face is regulatory challenges.
Thankfully, entrepreneurs can get both of these issues sorted by hiring an accountant. So here are 10 great reasons why every business owner should hire an accountant.
Get Started on the Right Track
To grow your business steadily and focus on what you love doing, you’ll want to set up systems that’ll help you succeed from the beginning. Using an accountant is one of the best ways to do that.
A qualified accountant can do many things to minimize problems from the beginning and maximize your business’ potential. They can sort out your accounting, help you choose the right accounting software, etc.
Later on, you’ll face problems like disorderly books, backtracking, and switching systems. These might take your attention away from the most crucial and profitable activities, so it pays to use an accountant.
Steer Clear of What You Really Don’t Understand or Know
Not many entrepreneurs have finance backgrounds or even familiarity with accounts receivable, accounts payable and taxes. It’s best to let a qualified professional handle those areas of your business.
That way, you’ll minimize mistakes and avoid issues that might cost you extra money. Remember, if you forget to pay for something important or miss a bill, this will greatly affect your business credit.
Escape the Dreary Aspects of Business
Does the financial side of your business fire you up? Probably not. You probably don’t have passionate feelings about writing checks for bills or tallying up payrolls.
However, those tasks may excite your bookkeeper, so it’s best to leave these things to someone who does them well because they love bookkeeping.
Find Work-Life Balance
No matter how established or new your business is, you may find that you’re struggling to strike the right balance between work and life. In fact, one of the major challenges for new businesses is finding this balance.
Accountants can handle tasks that don’t excite you, and let you market and grow your business during the day. Then maybe in the evening, you can even take your daughter to music rehearsals.
Get a Professional Reputation
Startup businesses need positive and professional representation in all areas. Therefore, hiring an accountant will help to brand your business in the best way possible and help it gain credibility in the world of business.
Building good, long-term relationships with vital players, like banks, is critical to establishing a solid business foundation.
Maintain Cash Flow
As mentioned early, cash flow is the most important thing that determines the success or failure of a business.
Behind every successful business is somebody who expertly takes care of the cash flow. Then again, a cash flow-related timing mistake has brought down small and large businesses.
An accountant knows all about report analysis, when to analyze reports and what red flags exist in this area.
Have you got a bigger tax liability this year compared to last? Do you need to renegotiate terms of payment with a vendor? Do the changing paying habits of a customer signal trouble ahead?
The answers to the above questions directly relate to your overall cash flow state and are obtained from financial reports. Having an accountant will help you minimize nasty surprises and plan your future for maximum profitability.
Ensure Proper Tax Filings
The last thing any business owner wants is to be audited or be pursued by the taxman simply because they forgot those annual or quarterly tax earnings.
Based on your startup’s business structure, you’ll have various tax requirements, such as estimated tax payments, 1099s for freelancers or contractors, corporate tax payments, and other filings.
It’s best to find an accountant who can sort out payroll, taxes as well as other financial matters.
Investors Are Impressed by Accountants
Ever watched the Dragon’s Den? If you have, then you’ll know that it takes more than charisma, passion or creativity to win an investor over.
Your projections are far more important than your pitch. Hire someone to ensure your figures are accurate, reliable and on hand when it actually matters.
Apart from ensuring that you’ve got the necessary data and analysis for a successful pitch, having an accountant lends you respectability and credibility–something you’ll need in your first entrepreneurial venture.
Stay Informed
Tax rules, federal and state laws, and local regulations that relate to your daily business operations all change frequently.
Understanding the tax and financial implications of such changes is an essential part of business accounting. And it is another field where a quality accountant can save you the hassle of reading and looking for the best and latest information.
Hiring an accountant in your small business will allow you to spend that valuable time running your company instead.
Makes Growth Easier
How do you tell when it’s the right time to expand your business? How far can your finances be stretched without putting your company on the line?
Most entrepreneurs tend to trust their instincts when making these kinds of decisions, and a big part of running a company successfully is having business acumen. However, your risk is really minimized by letting someone handle your financial side of the business.
A reliable accountant can help you know when your business picks up, as well as when you should consider handling extra orders or stocking up.
You don’t even need to meet the accountant in person to discuss these things–thanks to online accounting services like Scrubbed–you can get advice from an accountant and act on it.
Hire an Accountant Today
From saving your time and money, to greater cash flow and better work-life balance, hiring an accountant is a good idea for your business. So, go ahead and start the recruitment process to hire an accountant today.
For additional information about bookkeeping in your business, be sure to check out our blog.