The need for an accountant in your small business cannot be overstated. Prime considerations include the level of your accounting skills, if you try to do your own accounting, and the amount of time you will spend doing the books instead of other business duties. Cost also enters into the equation as you have to evaluate whether you can afford an accountant. Let’s concentrate for a moment, though, the reasons you need an accountant is to SAVE money, time, and your business!
The Hill you Must Climb
Many small businesses don’t understand the size of the hill they must climb when they start their business. If they did, they might not even start their own business! The statistics are pretty grim. The Small Business Administration (SBA) and National Business Incubation Association (NBIA) statistics show that 80% of small businesses fail in the first two years and 85% fail in the first five years. What is one of the primary causes of the failure of these small businesses? The lack of adequate financial planning and management.
Selecting Your Business Structure
Consulting an accountant right at the start is the best decision you can make. The type of business structure you select will have a huge impact on your taxes, your financial reporting and management. In addition, the accountant can help you set up proper financial tracking and management systems so you have a better chance of surviving.
One of the biggest reason to have an accountant is to get your tax reporting correct. Whether that is reporting your sales tax, employee taxes, or your own business taxes, your company will benefit from an accountant preparing your taxes. This is probably the time that most businesses do contact and use an accountant. Unfortunately, a lot of savings are missed because the accountant wasn’t involved earlier. If you make a decision earlier in the year that misses a deduction because you didn’t know about it, your accountant can’t do anything about it when you file your taxes. Having an accountant to work with you and advise you on business decisions is a great way to maximize your tax breaks!
Credit and Growth
To grow, you must have financing, which means access to debt or equity capital. To get a line of credit from a bank, credit cards, an equipment loan, or a building loan your company will need a good credit rating and solid financials. A lot of this depends on paying your bills on time and eliminating any tax filing issues. Again, this is where your accountant can put you in the best position to maximize the resources of your firm.
You may want to save money and handle your own taxes, but as you can see, this can be dangerous for your business. Hiring an accountant to help you set up your business, manage your finances, and advise you on your business decisions can help you avoid many of these dangers. The good news is, if you are worried about money, you don’t need to pay a full-time accountant. You can hire a contract accounting firm like CustomOne CFO & Controllers and they will provide your business with cost-effective and efficient part-time accounting services. Contact CustomOne CFO & Controllers and ask for information on their contract professional services. You’ll save money, you’ll save time, and you may save your business!
Benefits from consulting a CPA