Risk is inherent in owning a small business. Certain risks, like introducing a new service or taking a chance on an untested employee, can have unexpected benefits. But it’s tough to imagine a scenario in which taking risks with your accounting practices would prove beneficial in the long run. My advice? Save the risk-taking for more creative ventures and play it safe with your books. Hiring a small business accountant can pay dividends for your growing business, in a number of ways.
Small Business Accountants Free Up Your Time
If you wanted to spend your work day dealing with bookkeeping and tax strategy, you would have become a small business accountant yourself. But you didn’t—you focused your time and energy on a different specialty. That’s where your valuable time is best spent.
Simply stated, handling accounting in-house may not be an efficient use of your company’s resources. Putting someone who’s not a small business accountant in charge of these tasks pulls them away from the work that they’ve been hired to do. If you own your own business and are trying to handle the accounting on top of everything else, delegating this to an expert gives you more time to focus on the parts of the business that you really love.
Accountants Save You Money
The expense of hiring a small business accountant is a primary reason that a lot of business owners are hesitant to commit. When profit margins are already thin, does hiring outside help really make sense?
Yes, when bringing in that outside help could ultimately cut your costs. A small business accountant can identify wasteful expenditures and opportunities for you to save cash. They’ll examine every element of your business to make sure it’s as cost-effective as possible. Also, bringing in professional help can prevent you from making the expensive mistakes that tend to happen when non-accountants try to manage their own business accounting.
It Adds to Your Professional Image
Have you had any issues with paying invoices on time? Do vendors or clients ever have to follow up with you about financial matters? For a small business that’s still finding its footing, a small business accountant can add a much-needed dose of professional order. If necessary, an accountant may even help your business improve its reputation for being prompt and organized.
Tax Time’s Much Easier
Keeping your business going is a full-time job, 52 weeks a year. So when it’s time to prepare and file taxes, where are you going to find that extra time? If you attempt this alone, it could mean sacrificing more of your sleep, energy and free time—things small business owners already have too little of.
Then there are the potential consequences of making a mistake on your taxes. Considering how often tax code changes and how confusing it can be, it’s too easy to make these mistakes. Tax issues have bankrupted plenty of small businesses. You don’t want to look back and kick yourself for not having asked for the help you needed. Hiring a small business accountant assures you that you did everything right the first time, and don’t need to lie in bed worrying that the IRS will come calling.
Plus, if you ever are audited, having an accountant who’s already familiar with your business and its books will be a big help. Don’t underestimate the relief of having an experienced accountant on your side if you do ever have an issue with the IRS.
You Get More Than Accounting Advice
Small business accountants have a wealth of knowledge. They can do a lot more than balance your books and file your taxes. When you hire the right small business accountant, they’ll use their talents to help your organization reach its goals, whatever those are.
If you have a wild idea to radically change your business model, your accountant can help you anticipate challenges and prepare for them. If you decide to expand your premises, your accountant can help you navigate applying for loans and managing your budget. As your profits rise or fall, and as the economy fluctuates, your accountant can make recommendations tailored to your business and goals.
I’ve worked with countless small businesses and understand the challenges of staying afloat. Consider taking that next step and let us handle the accounting while you and your team focus on what makes your business special. Contact me today.
Stephen Sachetta is a Certified Public Accountant and holds a Master’s Degree in Taxation. He has a diverse background of experience in the public accounting field over the past 40 years. He is a founder of Sachetta, LLC.