Could Your Small Business Benefit From An Accountant?customonecfo
People who start small businesses do so with a variety of skills and abilities based on their education and experience. Business owners have a handle on the product or service their business is based on, but few know everything about how to run a business. Having adequate experience in all business areas from management and human resources to accounting and finance, the business owner must wear many hats. How many small business owners can adequately deal with specialty areas such as taxes, setting up an accounting system, doing financial analyses and similar tasks? How much of their time do they have to spend doing those tasks with everything else they have to do? During startup you could benefit from an accountant or CPA to assist with the setup of your business. Once you start having revenue, hiring employees, or issuing bills it is definitely time to hire an accountant!
What Can An Accountant Do For You?
Without the assistance of a skilled accountant to help you set up your accounting systems, chart of accounts, invoicing, and other procedures, you are likely to end up in trouble – especially relative to taxes. So, hiring an accountant, whether full-time or part-time, is essential when you are starting your business. After your business begins operations you will need to use and maintain the accounting systems that you developed during start up. This is when you will need the services of an accountant on a more regular basis. They will help you classify employees correctly, from independent contractors (1099 Employees) to understanding the difference between Exempt and Nonexempt employees, your accountant will protect you from mistakes. They will get your financial statements set up and show you how to analyze them, along with your regular Profit & Loss (P&L) statement, and establish metrics for managing your business. The accountant will also take care of tracking and reporting your tax payments, W-2 and 1099 forms, and complete your taxes at the end of your fiscal year.
Can We Afford An Accountant?
Knowing when to hire a full-time accountant depends on your revenue and cash flow. As with all services and employees, you have to be able to afford pay for your accountant. One alternative is to contract for a part-time accountant, either through an accounting firm or specialized accountant staffing firms like CustomOne CFO & Controllers. You can also arrange for part-time or contract services from a single accountant or multiple individuals with different levels of experience from firms such as CustomOne CFO & Controllers. Using this model, you can rent a CFO to work with your staff for a few hours a week or on a regular schedule under contract.
In the final analysis, if you value your time at $100 per hour and it takes you 10 hours to do your taxes that is $1,000.00. Multiply that amount by the hours of other tasks the accountant will complete, multiplied again by the peace of mind of having certified professionals performing these tasks correctly, and you quickly see that it is considerably less expensive to hire an accountant!
Things to Consider
If you need help analyzing and understanding your financials, planning growth strategies for your business, or getting the most efficiency from some areas of your business, it is time to consider some assistance. If you would like to investigate contract accounting services, contact firms such as CustomOne CFO & Controllers to discuss your needs. Their financial professionals supplement and provide guidance to a variety of companies and could be the answer to what you need.