By Henry Brown
Many small business owners and solo entrepreneurs only have one thing on their mind: making money. It can be very expensive setting up a new business, so there is no wonder why many entrepreneurs try to take on as many tasks as possible, to try and cut down on the number of contractors they hire. However, you should never try and take care of your accounts and finances on your own. If you only hire one contractor for your business, make sure it is a trusted accountant.
For many entrepreneurs, their accountant is an absolute life saver and the best friend their small business has. But why are they so important? Here are reasons why you certainly need to know a good accountant if you want your small business to succeed.
Frees up your time
It’s a good idea to get an accountant on your side from day one as they can help you get your business off to a flying start. This is especially the case if you are planning on hiring employees, as you will need to sort out the payroll. You will definitely have a lot on your plate once you set up your new business. Are you really sure that you have enough time to carefully take care of your company’s books? Chances are that you won’t. As your books relate directly to your taxes, it is important that you give them to someone who can dedicate the necessary amount of time that it takes to make sure they are correct. If you try sorting them out on your own, you may end up rushing them and making a mistake. And that could put you in the taxman’s bad books!
Help with jargon
A whole lot of jargon comes with bookkeeping and looking after accounts. If you don’t fully understand all of this, you just won’t be able to prepare your accounts correctly. For instance, do you know how to fill in the various forms like 1099’s? If you don’t have a clue, it is much better to hand them over to an accountant to fill out for you. Plus, an accountant can also carefully explain all the accounting jargon so you can better understand your company’s finances.
Help reduce your annual tax bill
Filing your taxes can be extremely complicated, and if you try to do your company’s tax all on your own, you could end up getting it very wrong. That could lead to a fine from the IRS! But it could also mean that your tax bill ends up a lot larger than what it needs to be. If you let an accountant do all your taxes, you will find that they can greatly reduce the final bill. That’s because they know exactly what can go towards your company expenses, The more expenses you have, the lower your bill will be. Plus, all accountants know the various loopholes you can use to help bring your bill down further. So, if your tax bills have been shockingly high for the past few years, it could be worth calling an accountant to see about the savings you could make!
Better control cash flow
If there is one thing that many business owners struggle with, it is their company’s cash flow. More often than not, in fact, cash flow can become such a huge problem that it often ends up controlling the entrepreneur! If you find that you always struggle with your business’s cash flow, it is a good idea to set up an appointment with a local accountant. They will be able to explain how you can fix the various issues you have and get in control of your cash again.
Good networking contacts
Accountants work for a wide range of clients who have businesses in various industries and sectors. And that makes them great if you ever need to network and find some new contacts. They will be able to dip into their address book and put you in touch with the right people! Lots of entrepreneurs give their accountant a few of their business cards so that they can hand them out to any of their other clients who might need the product or services that you offer!
As you can see, there are many advantages to finding an accountant to take care of your small business’s books and taxes for you. So, why wait any longer? It’s time to find your ideal accountant now!
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Henry Brown is an online marketing executive. When he isn’t talking shop he’s roaming the streets of London, uncovering the extra-ordinary in the ordinary.
