Whether you’ve just started a small business or are thinking of doing so, it’s important to take into consideration the success rate statistics behind it. The Bureau of Labor Statistics shows that around 80% of businesses with employees will see their first year of existence through. But as the years pass, this number tends to dwindle exponentially, with only 50% of small businesses still on the market in their fifth year of business. This typically happens as a result of poor financial management. To this end, many business owners tend to underestimate an accountant’s crucial help in their financial operations. Let’s see what the most four important reasons are for hiring an accountant:
1. Save Time, Energy and Money
Small business owners usually work with a tight budget, so every penny that goes out of their business becomes extremely important. This is why many of them think that an accountant is actually an expenditure they can’t really afford, but they fail to take into consideration the advantages that having one would bring. Handling your own finances requires plenty of time and energy that should otherwise be dedicated to developing your business. Other than this, a lack of thorough accountancy experience can lead you to make errors that can end up being calamitous for your business. Putting things into perspective, hiring an accountant to handle your finances can be a lot more budget-friendly for your business than going at it alone.
2. Maximize Your Deductions
Accountants have another amazing strength and that is the ability to spot opportunities for tax deductions and advise you how to make decisions so as to benefit from them. As a business owner, there are so many opportunities to win back some of the money you’ve invested, that it would be a shame to not explore them. Home office space and out-of-space expenses all need to be tracked properly and an accountant can do this for you. Every single penny matters and when you maximize all your earning possibilities, you can draw the line at the end of the year and notice a considerably improved budget.
3. Get Sage Advice for Your Financial Decisions
With their vast expertise, accountants can also double as financial consultants. As a fresh entrepreneur it’s difficult sometimes to foresee the long-term impact of your financial investments. Good accountants usually take the time to further their education by enrolling in additional accounting classes and keeping themselves up to date with the latest regulations. To this end, they have a wider and more accurate perspective on what investments are more viable for your business and how they will play out long-term. This is why it’s best to treat your relationship with your accountant as a collaborative one, where you both work together to find growth-conducive solutions for your business.
4. Keep on the Safe Side and Successfully Pass Audits
Every single business owner will dread the occasional audit that may incur serious financial damage to the business when operations are not in line with the latest regulations. However accountants can help you not only successfully pass these audits, but also avoid them. This is by making sure there aren’t too many errors on the tax forms or too many acts of ‘charity’. To this end, many business owners mistake in believing they can have lots of things simply fly under the radar. However when an audit does come around, the consequences may be catastrophic for your business and this is certainly something you need to avoid.
All in all, an accountant is a small business’ best friend, since their best interest is to protect it and see it through the years without minimum financial damage. Hiring an accountant for your business may be the best decision you make to set it on the right track to growth and prosperity for the years to come, fighting those pestering statistics. When browsing around for the best accountant, take into consideration their experience in the field, their tech adaptability, willingness to keep themselves up-to-date with the latest fiscal changes and personal chemistry between the two of you, since this can ultimately make or break the game.