Guest Author: Gwen Payne, Invisible Moms
As a small business owner and entrepreneur, you know that in order to save money and maximize profits, you need to handle a lot of the day-to-day business operations on your own. However, and though this may be difficult for you to hear, there are some tasks that are best left to the professionals. One such task is accounting.
1. Start Your Business Off On the Right Foot
You have a lot to think about in the early days of your business, such as what type of business structure is right for you, whether you want to operate out of your home or a storefront, whether you will need startup funding, and whether your business plan is financially doable. By working with a small business accountant from day one, you can make sound financial decisions throughout the startup process and create a solid foundation from which you can build your business in the most cost-efficient way possible.
2. Put Your Business In a Position To Secure Funding
Startups often struggle to obtain funding because lenders have little information on which to gauge risk. As a result, lenders who are willing to originate loans to entrepreneurs look for certain personality traits in the borrowers themselves. One such trait is the ability to manage money well.
Not only can a reputable small business accountant help you manage your money, they can provide you with financial advice that is tailored to your current situations and needs. The right accountant will take time to get to know your business, identify the most viable funding options available, and advise you on how to fill out the application to increase your odds of approval.
3. Reduce the Risk for Costly Errors
There are many tax laws that govern everything from the type of business structure you can create to how you file your taxes to where you keep your money. If you are not familiar with these rules, as most experienced CAs & CPAs are, you risk making mistakes that could cost you big money to fix later on. With the right guidance early on, however, you can reduce or entirely eliminate the risk for errors and, therefore, operate with ample peace of mind.
To make your accountant’s job easier, you should take advantage of payroll for startup software that will collect all the data in one place. The right payroll software will automate your payment schedule and offer direct deposit and tax filing services. Complementing payroll software with a professional accountant’s experience can have ample benefits.
4. Get Help During Tax Time
Sure, you can get help from any run-of-the-mill tax preparer come tax time, but what if your business is subject to an audit? Who will represent you?
If you ever receive an audit notification or need help with other issues, it would help to work with someone who is familiar with your financial situation and who helped file your taxes in the first place.
There are dozens of reasons your small business should hire an accountant. However, the biggest are an accountant’s ability to help you get a strong start, obtain funding, reduce your risk for costly errors, and provide representation in complex tax matters.