Do you need an Accountant?
AHH! Why hire an accountant, when there are so many tools available in the market to perform the accounting function, so why to spend on such non-revenue generating task?
We know it- whether you are an experienced entrepreneur or a startup, small businesses always want to reduce their expenses to the maximum. That’s the reason; small companies prefer to spend on those aspects, which they find are necessary for business growth.
We here are to surprise you with some critical factors describing that hiring a small business accountant is completely necessary and worth the cost. A business accountant can save your business thousands and make your life as a small business owner worthwhile. In light of this, when businesses should hire a small business accountant?
Here are some situations that indicate you may need to hire a business accountant:
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Need to formulate financial strategies
When you are about to start a restaurant business or retail store, you want to run it efficiently and you should know the basics of accounting. If analyzing financial statements are ambiguous, creating reports are confusing, or accounting terms are blathering, you should hire a business accountant at the beginning.
An accountant can help you articulate an effective financial strategy when you’re outlining your business plan and explain to you how to manage your business’s finances smartly in your initial phase.
And if you miss on essential information early on, it may cost you high later. Failure to keep check on your expenses is one of the reasons small businesses fail. Thus, an accountant can teach you accounting basics so that you can take full control of your finances.
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Need proper legal structure
Deciding on legal structure has always been a hassle for small businesses as your choice will matter for your finances. There are options like LLC, a sole proprietorship, partnership, or corporation- choosing your structure type is vital for small businesses.
For example, if you pick sole proprietorship, you’ll be working as an independent contractor and invoicing everything under your name. Being a small business owner, if you go this path, you can save on your taxes by subtracting your living expenses.
However, every legal structure has its unique challenges, and you might not be a professional on the subject, but a business accountant is. An accountant can thoroughly explain you all the legal structure and help you choose the right one according to your business offerings.
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Need strategies to save on taxes
Every small business owner has a myth that they know everything about tax filing. Well, you know the IRS and the changing regulations, and due to lack of time, you may end up making mistakes.
This is perhaps the best or a great reason to hire an accountant. An accountant will make sure that you are paying the exact taxes according to your industry and business category, and you don’t get hit with fines and penalties.
A business accountant provides the most valuable assistance in tax season by keeping you updated on your retail or restaurant tax acclaims and deductions. Maybe you have time constraints to chomp your numbers and save on your taxes, but that’s precisely your accountant’s occupation.
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If your business is growing fast
Are you experiencing rapid growth in your small business? If yes, it is evident that all the profits are reserved. But how do you manage it?
Small business accounting is quite intricate, but it gets even more daunting when your customer base increases, when you add new vendors, hire employees, etc. Everything enlarges! A business accountant keeps track of how much you earn and how much you need to pay.
Above all, a business accountant can help you manage your cash smartly, so your business survives in the competitive market for a long-term. More so, if you are earning better returns but facing challenges to hold on that amount as a profit for your business, an accountant can help you better.
By taking a look at your business expenses, a business accountant can highpoint the areas where you can chop costs and manage your cash efficiently, enabling you to plan effective financial budgeting strategies.
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Need to apply for a business loan
So you don’t need an accountant for fruitfully applying for a business loan. But the fact is, an accountant can get you through your business application seamlessly.
See, whenever you apply for a loan, any small business lender demands thorough and organized financial documents. They make of use of this information to evaluate your eligibility for the credit.
A business accountant can help you stay ahead of your financials while applying for a small business loan. How?
- Answers to the lender about your current financial status and revenue forecasts
- Explain the seriousness of your small business, and you have the financial ability to make your loan repayments on time
- Give valuable advice on your terms and conditions and interest rates mentioned in your loan application
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Acquiring or selling a business
Purchasing or selling a company is a big deal for every small business owner. However, both the processes require a substantial amount of money and financial planning.
In case you are acquiring the business, a business accountant can dig into the financial statements of that company to help you detect any red flags before you finalize the deal.
Image Credit: Infographic on Financial Statements for Small Business Bookkeeping
You should be aware of the worth and proprietorship of the assets and whether or not the company has any unsettled debt in their books. Here is where a business accountant can help you by carefully analyzing each aspect.
And in case, if you are selling your business, a business accountant ensure that your financial records are accurate. They can setup statements of your financials that show how prospective buyer you are. You have worked hard for your business, so get the right value for your acquisition procedure.
Bottom line
Why not take valuable advice for your business’s financial growth? If the cost that makes you hesitant, then think of it this way!
Managing accounting and filing taxes on your own, you are actually spending your valuable hours that can be well-managed by an expert. If you could handover your accounting to professionals, you can easily save on cost, time and efforts, and enable you to stay focused on the core activities of your business.
A business accountant can be a priceless advisor for your small business.
Learn more
If you operate a brick-and-mortar store whether it be a restaurant or retail store, you need to keep accurate sales and tax records for your accounting software and accountant. Find out how Harbortouch POS software can help you stay on top of your numbers by visiting https://www.harbortouchpossoftware.com/.
