Should you hire an accountant? Is it a need or simply an unnecessary expense? This article will help you answer these questions so that you can find out if you should get an accountant or not.
One of the things that small business owners give little attention to is dealing with lawyers, bankers, and yes, accountants. Many new businesses simply set up shop and start operations as soon as they have the products/services available and some staff to help them run the business. A lot of them fail to understand just how valuable and essential professional vendors are and how they can contribute to the success of a company. They do the best they can in order to avoid having to pay for “extras” not realizing that they could lose more in the process.
Before going any further, understand that every business needs an accountant, period. These people have the ability, skills, and knowledge that are considered important in terms of influencing the flow of your business, and as a responsible and smart business owner, you should develop a solid relationship with this professional. After all, your accountant will be server as the light at the end of the tunnel in situations wherein your business finances seem confusing and complicated for you.
This idea might be a little difficult to fathom now but as you spend years in your business you will come to realize just how applicable this is to you. An accountant will be able to offer services such as:
1. Helping you create your very own accounting system, which will make annual financial reports a lot easier to make.
2. Assisting you when it comes to knowing the correct types of taxes you need to pay and for how much.
3. Guiding you in sending out 1099 and W2 forms to the right agencies and ensure you don’t get in trouble with the IRS.
4. Teaching you how to separate personal and business expense.
5. Compiling financial records every period.
6. Helping, assisting, teaching, and guiding you in understanding your financial statements.
So you see, an accountant’s role in your business is really significant. You probably do not know how to take care of the scope of responsibilities mentioned above, and only accountants have been trained to handle these things. Precisely why accountants are in-demand; large businesses and corporations know that they are prerequisites to a successful business.
Imagine the amount of money you could lose if you didn’t know just how much your tax dues are, when they are due, or if you don’t know how to read and understand your financial statements. If you didn’t hire an accountant and you don’t know these things, your business’ financial aspects would be a mess and that’s the truth!
You might not realize it now but perhaps a year later you would agree with me when I say (for the second time) that every business needs an accountant. You will probably argue that hiring one can be expensive, but would you really scrimp on a few hundreds if you can save thousands in return?