Twenty-One Reasons Why Small Business Owners Should Hire an Accountant

If you are in the process of starting a small business with limited funds, the chances are that you have spent a great deal of time trying to decide how you can cut your expenses and stretch your seed capital. It is imperative to point out that many small business owners face the same challenge.

Do you have any experience in accounting? If so, this is one skill that can help you save a tremendous amount of money. A solid understanding of business finances can help you avoid adding an extra cost to your new business.

However, you should think twice if you do not have a reasonable amount of experience in managing the books of business. Learning on the fly can hurt your business now and in the long run.

In this article, we are going to cover the twenty-one special services accountants offer to small business owners. It is imperative for you to read the following list carefully. Having a full understanding of the items in the list will help you discover the value of having an experienced accountant in your corner.

During the Start-Up Process

There are many important things you need to do when you start a new business. Let’s look at how an experienced accountant can help:

1. Choose the proper business structure (sole proprietorship, partnership, corporation, LLC) for your current situation.

2. Offer help with the financial analysis in your business plan.

3. Recommend accounting software.

4. Help you open a commercial account at a reputable bank.

5. Make certain your accounting procedures are in compliance with government regulations and requirements.

6. Offer sound advice on how to check daily business expenses.

7. Explain why it is vital for you to keep personal and business expenses separate.

During Your Regular Business Operationsaccounting

After getting your business off to a good start, it is important for you to sustain the accounting system created by your accountant. Here are some steps your accountant may take to help you throughout the year:

8. Make certain that your independent contractors meet the guidelines set forth by the IRS.

9. Help you master your financial statements.

10. Take care of company payroll and payment processes.

11. Help you make the right decisions when it comes to estimated tax payments.

12. Handle your W2 and 1099 forms.

13. Take care of your books (close them out) and create accurate financial reports at the end of each year.

14. Submit your annual financial reports, taxes, and required paperwork to the Internal Revenue Service.

During the Growing Stage

Your accountant Coquitlam will play a big role in helping you expand your business. Here are some things you can expect from your accountant when you are ready to grow your business:

15. Provide guidance on property leasing, equipment leasing, and purchase.

16. Help you pinpoint areas for growth by analyzing inventory management, cash flow patterns, pricing and business financing.

17. Help you avoid getting audited by the Internal Revenue Service.

18. Help you get through an audit (if necessary). Ribeyre Chang Haylock says this is the most vital part of having an accountant.

19. Develop financial forecasts that will put you in a position to make wise decisions for your business.

20. Help you create a solid business budget that will expand your business.

21. Offer critical insight and invaluable resources that will help you sell your business at a fair price.

Starting a small business can be a big challenge for anyone. This is the primary reason why you should consider hiring an accountant. An experienced accountant offers the twenty-one valuable services listed above.

There are thousands of accountants around the country. You should do your due diligence before hiring one for your small business operation. Hiring the right accountant can help you become a successful small business owner.

Finding An Accountant For Your Investments or Business

professional accounting services

To make your business or your investments run in a smooth, efficient manner, business owners recognize the necessity of hiring a versatile set of employees, each with different skills. You may need a customer services representative or an office manager. More than likely you will need more than one of these examples. And for most businessmen a skilled accountant will be a valuable asset and an irreplaceable member of their team.

Finding an accountant to work with you or your business should be a painless experience.

Certified CPA

As a business owner you have to make sure the accountant is a certified CPA and has taken courses in general accounting. An ideal accountant will be familiar with all aspects of business financials, including payroll and taxes, and will be able to work with individuals and corporations alike.

Having a business or investment accountant can save business owners time and stress by knowing that their finances are taken care of. You will want an accountant that is proficient in QuickBooks, and can handle your payroll, making sure each employee is given his paycheck. Your accountant should also be well versed in all aspects of tax accounting, and should be able to prepare accurate tax return statements.

Accountant records

The ideal accountant will keep an accurate record of all bookkeeping, payroll accounts, tax accounts, business accounts, etc. An accountant that keeps accurate records and understands tax laws will not only keep his employer legal by filing the proper taxes, but the records kept will also protect the employer in the event of an audit.

Locality

When screening prospective candidates it is best to look for an accountant that works locally, in an area near your business. There may need to see your accountant every week, so it’s good to consider the locality. This is also important because you will need an accountant that knows how to file taxes in compliance with national, as well as local, laws.

Take some information from family members and friends

It’s good to request some of information from relatives who have some business as it will be difficult for them to recommend a person they have ever had a crash with.

Client base

Enquire about their clients base and what they specialize in. some may have experience in your specialized business needs thus enabling him/her to give a perfect job in your business.

It is important to identify what type of diverse accountant your business desires to function and succeed. Each different accountant can be needed at dissimilar times and by knowing which one, or ones, your business requires makes for the smooth running of the finances.

Take your time finding your accountant. If you have to, shop around. Interview a number of prospective candidates until you find one that suits your needs. You want to make sure the accountant you choose is one you can trust with your financial information.

After you choose your accountant, you may rest easy knowing that your financial life is in the hands of a professional, trained specifically to handle accounting and finances.