Typically, nearly 85 percent of small businesses in the US fail within their first 24 months, mainly due to poor financial management. However, most owners and managers don’t actually realize this fact. In spite of these serious consequences, they often go alone when it comes to money-related activities, even without an accountant. And even more shocking, many SME companies just use paper and pen to keep track of their financial situation. While it might be hasty in concluding that these firms fail for not having accountants, we cannot underestimate the importance of experience and knowledge they can offer.
Accountants can do more than just tax filing. They can create a comprehensive evaluation of your finance and make a forecast during the year to ensure that your business stays in a prosperous and healthy condition. Perhaps you might feel daunting to allow an outsider to manage information on how your company is running. But co-operating with an accountant can actually help you to accomplish your goals and result in long-term success. With that, below are 5 reasons why it is essential to hire an accountant for your small business.
- Save your energy and time – Most start-up or small business owners believe that a tight budget is the main reason why they can’t afford for an accountant. But as you think of how much effort and time spent on attempting to manage the financial situation and correct possible errors, the benefits definitely outweigh the expenses. As a manager, your top priority should be on operating your company. Hiring a professional accountant as a tactical adviser might assist you a lot in keeping that focus as well as helping you achieve the ultimate business goals.
- Get all tax deductions – During a busy tax season, many business owners are stressfully thinking of the most effective ways to maximize their deductions. Nevertheless, it might be too late to have an impact on that by the end of the year. A professional accountant can help you by simply finding out these possible deductions throughout the fiscal year and then advise you how to decide strategically for year-end deductions. A lot of business owners neglect to account for and track items like home office space, out-of-pocket expenses, and depreciation. So, do not leave your money on the table!
- Make real-time decisions – Most of the time, many business owners wish that they would easily measure the possible implications and consequences of hiring more staff or purchasing a big office. Having a professional accountant as your financial adviser will enable you to cope with any problems that happen in real time. Therefore, you need to have a collaborative approach with an accountant, which allow you to make informed decisions on the latest data and make use of a consultative relationship to come up with a timely solution.
- Avoid audits – Another compelling reason for hiring an accountant Salt Lake City is to avoid some dreaded audits. Regrettably, most small business owners consider accountants as someone who can only solve these problems after they have happened. Always keep in your mind that it can be easy to avoid an audit when you get the counsel and guidance of an experienced accountant all year round. There are many reasons why your business is audited such as excessive write-offs or mistakes on the tax forms. Thus, think of accountants as your long-term partners who are invested in your company and care to keep it financially sound.
- Create future plans – Finally, one of the most important benefits of hiring accountants is to get helpful advice on how to make plans for the future. By co-operating with experienced experts, you can get reports from the past weeks, months or years and examine the variations of your business in different periods. As a result, it will help you decide the best time to allocate significant investments or buy inventories so that your company can remain viable and competitive. As an entrepreneur, you can be often overwhelmed with the daily tasks of operating your company. However, a good accountant can help you take back and have an objective look at the bigger picture to determine the best strategy to sustain and develop your business.
The task of managing a small business can be isolating and boring, particularly when you are left with a bunch of invoices and receipts at the end of each month or year. But it doesn’t need to be that way, and partnering with an accountant service like CPA Salt Lake City might be an ultimate option. With the right expertise and skill, they will guide you through the whole process and achieve lasting success.