One of the most common mistakes that many small business owners are guilty of is that they tend to wear too many hats. They think they’re being practical and are saving money by doing everything on their own, even the tiniest bits.
However, the truth is that although these ancillary tasks are also important for the smooth running of your business, accomplishing them all on your own is not an efficient use of your time. As a business owner, you should dedicate your time, effort, and focus on the core aspects of your business.
The best example of a non-core yet essential task that many small business owners tend to manage on their own is accounting. Not because you’re just a small business doesn’t mean you don’t need an accountant.
Entrusting the finance-side of your business to a pro is the best way to keep track of your numbers and understand what they mean. So if you’re after saving some money, stop being a one-man team and start getting some help from a reliable accountant.
In this article, we’ll discuss the different ways an accountant can help you save without getting yourself all burnt out.
1. An accountant can help you ‘find money’ within your business.
One of the main duties of an accountant is to ensure that your books are sorted and your bookkeeping process is streamlined. This is great for your business because better recordkeeping of your financial transactions will help you monitor where your money is going.Consequently, if you have a clear view of your spending, you can also review which costs can be minimized or totally eliminated. Also, your accountant can analyze your accounts and pinpoint which of your investments yield the highest returns or how you can take advantage of trends to earn more profits.
The bottomline is that your accountant can guide you how to become more strategic when it comes to spending and help you identify opportunities to earn more.
2. An accountant can help you save on taxes and avoid penalties.
Another important part of your accountant’s job is ensuring that your taxes are paid right and on time. Incorrect or late filing can subject your business to costly penalties that could otherwise have been avoided.
However, aside from avoiding tax penalties, you can also benefit from expert advice on how to optimize your tax position. By working closely with your accountant, you can get some recommendations on how to minimize your tax liability and take advantage of all claims you’re eligible to while staying 100% compliant.
3. An accountant can help you manage your cash flow better.
For small businesses, cash is king. Regardless of your type of industry or niche, cash flow is the life blood of any business.
With this, it is important to manage your cash flow properly to ensure that your business has enough money to survive and keep its doors open. However, with too many things on your plate, we know that some things could easily slip through the cracks.
When you hire an accountant, you can gain access to financial forecasts and be assured that you have a professional who keeps a close eye on your business’ cash position. In short, potential issues will be addressed even before they cause significant problems.
So if you find yourself going through an unexpected crisis or have been faced with far too many close calls with insolvency, take this as a sign of poor cash flow management. Don’t lose sleep over these financial troubles– let an accountant help you target weak areas and improve your liquidity.
4. An accountant can ensure your financial paperwork are accurate and prevent you from being fined.
If you’re like many business owners, you also dread paperwork and numbers. So if you don’t have the skills, the time, or the patience to do your business’ accounting paperwork, that’s fine. That’s what accountants are for.
When you have an accountant, you have a professional looking over your accounting paperwork and ensuring that you’re not fined for unintentional slip-ups. This is also applicable when claiming expenses and preparing the corresponding paperwork. Your accountant can help you save money in areas you hadn’t considered before and make sure everything is above board.
Accountants Can Do More Than Just the Heavylifting
While it’s true that accountants can help with the paperwork and busy legwork such as filing taxes, generating reports, and keeping your books on track, they can actually add greater value into your business and even help you grow.
Remember, when running a business, it’s not enough that you are passionate about what you do. If you want your business to thrive and become one of the leaders in your market, you have to ensure that it’s financially sound.
An accountant can help you monitor your financial health and growth, set realistic goals, and help you create a concrete action plan on how to get there. Aside from crunching numbers, exceptional accountants can double as your business advisor.
With this, you need to find the right accountant who is not only in the picture when there’s a problem or during the tax season. Your small business will greatly benefit from having an expert who can provide timely and proactive advice, as well as data-supported insights on how to run things better.
Also, a great accountant can provide support in your business strategy and decision making, ensuring you take the right steps to boost your profits and take your business to a whole new level.
Final Thoughts
It’s not a question of whether you have a finance background or not– it’s about how to make use of the limited hours in a day more efficiently. So don’t bite off more than you can chew, and concentrate on driving growth to your business.
Having an accountant to oversee your finances will not only save time and money, but will also give you the peace of mind you deserve. So if you’re ready to leave your books to the pro and start working on your business rather than in it, you must take the first step and hire the most trustworthy accountant you can find out there.