A recent report found that 53 percent of small business owners don’t use an accountant at all. And even more shocking, 27 percent of these respondents simply use pen and paper to keep track of their finances.
No harm in not hiring an accountant, unless you are an certified accountant by profession. Otherwise is it advisable to hire an experienced accountant for your business accounting.
To quote a best example most people don’t service their cars at home. Instead, they bring them to a professional mechanic who can keep things running smoothly and spot potential issues. Small businesses need just the same attention from a professional.
A good accountant offers much more than filling out and filing forms; they can provide expert advice and information, tax filing, make you audit ready. They can take a comprehensive assessment of your finances and create a forecast through the year to keep your business at a healthy, prosperous state.
Does an accountant cost money? Of course, and it’s one of the main reasons preventing entrepreneurs from seeking the services of a professional accountant. But I think startups should consider their services investment, not an expense.
Now let’s see the benefits of hiring an accountant and what things we have to keep in mind in choosing the best one.
Benefits of hiring an accountant:
Allows you to focus on the core of your business.
The reason you started your business is where you should focus. Your passion is the foundation of your success. Why spend your time and effort on something you’re not an expert at? Let professionals take care of everything regarding your accounting.
A professional legitimacy.
Having a professional taking care of your accounting will give you some legitimacy in front of key partners such as banks. This will be an advantage when time comes for you to ask for a loan. Showing the bank that your finances are well taken care of will definitely be a plus.
It’s vital to a company’s success.
A lot of entrepreneurs and business owners recognize that having an accountant handling their taxes and bookkeeping plays a big part in their business’ success. Indeed, it allows them to focus on their business.
A new perspective.
Entrepreneurs often find themselves drowned under a lot of work and tend to miss the whole picture. Working with someone outside of your company can give you a different or new perspective on your business.
They have a wider reach.
Beyond helping you free time to focus on the core of your business, accountants have insight and knowledge across hundreds of businesses and industries. They can provide you with guidance on the best practices and tips on how to avoid mistakes that could make your business fail.
Businesses need a road map to success.
Benefit of Outsourced Accounting Services having a clear plan is what will make your business succeed. Accountants can help you figure out where to start, provide you with the necessary data and help you build a road map to success.
They understand tax.
Furthermore, as rules and regulations change on a regular basis, it is important to work with someone aware of these modifications. To make sure your business stays compliant, you should have a tax and bookkeeping professional taking care of your finances. They can also help you strike a balance between company taxation and personal taxation.
Analyze data for growth and profitability opportunities.
Finally, an accountant will help you analyze and interpret your database to make better decisions and give a direction to your strategy. A professional will indeed give you a better overall idea of your potential growth and profitability.
Balance your time between work and family.
Delegating time–consuming accounting tasks to a professional will help you free some time for your personal life. It is important that you keep a balance between your work and your friends and family.
Considerations when hiring an accountant:
As you can see, hiring an accountant is a wise business decision. But how do you find a qualified one?
Personal recommendations will be the best place to start. If you are a member of any professional organizations, ask fellow members if they can refer you to a good accountant. They will be familiar with the accounting needs of fellow freelancers and small business owners.
Please find the few important considerations while choosing for the best accountant.
- Choose a certified or chartered accountant.
- Look for an accountant with relevant expertise.
- Talk to government and business associations.
- Tap into your social networks.
- Make use of your connections online.
“The right person will save you time and money year after year”
- Well, as there is a flip side to every coin, there are few disadvantages or cons related to the professional accountants. Let’s see learn them now.
Their services are bit expensive.
Accountants expect to be paid for the work they do and for some businesses, the added expense can be a real budget buster. The certified ones are to be paid high compared to other budding accountants.
There’s no guarantee against mistakes.
Accountants, like everyone else, are human, and there’s no way to guarantee they won’t make an error at some point. If it’s something small that can be corrected quickly then it’s usually not a big deal. But on a larger scale, it may be dangerous.
Hence periodic reviews on the account books is an advisable task to perform fortnight to assess where do u stand in terms of audit, tax and financial. The relationship you have with your accountant should be a partnership, with both of you taking an active role.
Taking a look at where your business is and what the scope of your needs are probably the best way to guide your final decision on whether hiring an accountant is necessary or not. If you try to master every department in which you are not good at, then you will be a master of Jacks. On the other hand, if you’ve got the time and the know-how, the solution may be as simple as investing in small-business accounting software and taking the time to understand the numbers.
Thank You !!