4 Reasons Your Small Business Needs an Accountant

Any new business, especially a small business, should consider hiring an accountant. While it’s understandable that most new business owners want to do the work themselves and would rather not spend their hard-earned revenue for the additional help, hiring an accountant is worth the investment. While it will surely cut into your profits, the extra expense is well worth it. The following are just four of the reasons an accountant is a must needed expense for a small business.

Tax Laws

Tax codes are tricky. It’s not a secret that the average individual doesn’t keep up with the latest tax laws; however, an accountant does! Tax laws can often work in favor of a business, but they can also work against a business based on a variety of factors and situations. It’s an accountants job to help strategize throughout the year to make the most of any deductions and expenses when tax season comes around.

Auditing

New businesses and small businesses have a higher chance of getting audited. While you may think you are saving some money using DIY tax software, an accountant has an expert eye and can catch miscategorized expenses that can be flagged and require your business to be audited. This also means that come tax time; your accountant can help make suggestions about the financial health of your business, which will help minimize how much you pay when filing every April.

Financial-Related Tasks

While you are starting and expanding your new business, your accountant can be handling all of your finances. They can chase down missed payments. They can also handle paying your monthly bills, managing payroll, and navigate your sales reports and business forecasts.

Businesses Financial Health

Most new businesses and small businesses fail because the finances of the company are often forgotten. An accountant will be able to help you fine-tune the unnecessary expenses and help you figure out cost-saving strategies in areas that your business is losing money. They are also there to help strategize business growth and forecast your future.

Whether you plan to hire a full-time accountant or monthly, it’s essential to check in with them regularly! An accountant is there to help, and the investment in hiring them will pay for itself as your business grows.

Originally published: https://colemurphyharris.net/4-reasons-your-small-business-needs-an-accountant/