Majority of the small business organizations constantly keep juggling between competing priorities and making important decisions to allocate their business resources and make them work in the best way. If you're starting off with a small business with a tight budget or you're bootstrapping, you have most probably spent a lot of time trying to figure out the places where you can cut down business costs and where you can do a little more in order to stretch your funds. Accountants can help out at different stages during the initial phase of your business and they can handle much more than just taking care of your tax returns and payroll.
Despite being aware of the benefits of hiring an accountant, most small businesses fail to afford one. Although there are many owners with solid knowledge on bookkeeping and accounting, yet they rely more on the expertise of a professional accountant in order to steer clear of problems during the tax season. Something that most small business owners fail to realize is that the value of the relationship with an accountant is huge. According to Mr. Perez , the CEO of PrestoExperts, it is pretty tough for a business to survive without the valuable assistance of an expert accountant. Indeed, the added insight, expertise and guidance offered by a pro accountant can often work as a catalyst to make your business remain afloat in the tough competition. He also added that it is an accountant who can serve the role of a reliable advisor who can offer best counsel in order to take your business to the next level. Accountants bring expertise, knowledge, experience and a perspective which can build a plan to turn the ambitions into reality.
During the initial phase when you're setting up your business
Whenever you start off with a business, there are many responsibilities that you need to carry out in order to achieve success for your business. Here are some ways in which an accountant can help in the initial phase:
- Helps you determine the most appropriate business structure, like LLC, sole proprietorship, corporation, partnership, whichever kind fits your business
- Analyses your finance with regards to your business plan
- Tells you which kind of accounting software you might need
- Assists you in opening a business bank account
- Ensures your accounting procedures abide by the government regulations
- Explains the vitality of maintaining separate personal and business expenses
During daily business operations
Once your business takes off, you require maintaining the accounting system which has been created by your accountant. Here's how he can help you during daily operations.
- Ensures that all your independent contractors are categorized by the IRS
- Explains all your fiscal statements so that you can comprehend the ins and outs of your business
- Oversee payment processes and company payroll
- Advises you on predicted tax payments which you should pay during the entire year
- Informs you about when and to whom you should send 1099 forms and W2
- Submits your taxes and compiles them and all other necessary paperwork to Uncle Sam
During the gradual growth of your business
When your business starts growing, your accountant can be a key resource which offers advice and helps you manage everything. Take a look at what an accountant can do for you.
- Determines the areas which are susceptible to growth and offers insights on inventory management, cash flow patterns and business financing
- Advises you on equipment and property leasing and purchase
- Prevents you from getting audited by IRS
- In case you go through an audit, the accountant guides you throughout the process
- Gives you financial predictions so that you can make better and informed decisions
- Works with you to create a worthy financial budget that will support you and help you achieve your business goals
- Provides you resources and advice to help you with the sale of your business
Factors to consider before hiring a business accountant
Here are some factors to check before hiring an accountant:.
- Proper accounting and financial management is important for your business firm to achieve success
- A reliable accountant should be able to understand both managerial and financial accounting
- A good accountant should also be an expert in business tax preparation so that he can assist the business during the tax season
- An accountant should have enough experience and small business clients
A business firm with good bookkeeping and a good controller might still require external accounting assistance. Internal accountant might lack tax expertise and hence it is always necessary to hire a professional accountant.