5 Reasons Why You MUST Have an Accountant for Your Business
It can come as a shock to many people trying to start a business that as many as 80% of new businesses fail within the first year and a half. The primary reason for this daunting statistic? Bad financial management. What DOESN’T come as a shock is that most of these failed businesses tried to handle the financial aspects on their own. This is why having a knowledgeable financial advisor on hand as partner and consultant is a key component to starting any business venture, especially for small businesses just getting off the ground. Professional accountants do a lot more than just helping you file your business taxes. Through a comprehensive analysis of your financial situation, cash flow and expenses, an accountant can ensure that you have an accurate forecast for your business so that you can stay prosperous and in the black for the year. Here are five reasons it’s vital to have an experienced, knowledgeable accountant helping you with the success of your business.
Ensuring you are keeping track of any potential deductions is a vital part of filing your business taxes. Many new entrepreneurs leave money on the table by forgetting to account for mileage, out-of-pocket expenses or home office expenditures. A professional accountant will help keep track of those types of potential money-saving deductions throughout the year so that come tax time, you can rest assured that you are doing everything possible to save your business money.
- Real-Time Decisions.
Many small business owners who don’t work with a professional accountant or business advisor find that when it comes to making big financial decisions, – like buying a large piece of equipment or hiring an employee – they are often doing so in a financial vacuum, without full knowledge of what the implications of the expenditure might mean for them down the road. Having a professional advising you on your cash flow and budget can make those decisions much easier, and you’ll be able to make in real-time with full knowledge and confidence.
Yes, the word that strikes fear in the hearts of any entrepreneur: the dreaded audit. One of the biggest mistakes a business owner can make is to only seek the advice of an accountant once they are already in an adverse situation, when they could have potentially avoided the situation by having worked with an accountant throughout the year. There are many reasons why the IRS decided to audit a business, from something as simple as too many mistakes on a tax form to something as complex as too many write-offs. An experienced accountant can protect you from these types of issues, and using their expertise to focus on the finances will free you up to focus on the important things, like running your business!
- Saving Time and Energy.
A common mistake among small business owners is that their razor-thin budget means they can’t afford an accountant. However, if you weigh the amount of time and energy you spend worrying about and dealing with the financial state of your business, you’ll quickly see that the benefits of hiring someone to do that for you far outweigh the cost. A business owner needs to focus on the day-to-day marketing and management of the business itself, and engaging a professional to deal with the finances will allow you to do just that.
- Planning for the Future:
One of the most important benefits of hiring a financial advisor for your business is the ability to plan knowledgeably for the future. A professional can help you look at past performance indicators that can help you plan for the possible seasonality of your business, which in turn can assist you with inventory control, budgeting for when to buy big-ticket items, and figure out the best plan to ensure the longevity of your business.
The life of a new business owner can be exceptionally stressful, but deciding to hire a professional financial consultant to collaborate with you on your venture can take a lot of that stress off your back, and allow to actually enjoy your new entrepreneurial status, and look forward to a future with confidence. <strong>Executive Public Accountants</strong> specializes in partnering with small business owners to ensure the financial health of their business is secure. <strong>Call us today</strong> to see how we can help you and your business breathe a financial sigh of relief!