Most businesses around the world fail within the first 18 months of their operations because of poor financial management, among other factors. That’s something that many business owners don’t realize, especially those who are still in the beginning stages.
In the face of these dire consequences, some business owners still deal with financial matters all by themselves. Yes, you heard it right–there are business owners who don’t seek the services of accountants at all. Also, most of them still use pen and paper in keeping track of all their finances, and that’s the more shocking part.
While it’s not right to conclude that these business organizations are worse off because of not having an accountant, one can’t take away the fact that the breadth of knowledge that accounting services, like Page Kirk LLP Nottingham, provide can be of significant help.
Are you wondering whether hiring an accountant is a good idea or not? To help you decide, here’s a detailed look at how hiring accountants help keep your business in check:
1. Keeps Records Of Your Financial Affairs
Many business owners don’t know about bookkeeping. And, if you’re one of them, it should be the primary reason why there’s a need for you to hire an accountant.
Everything that surrounds the financial environment of your business gets tackled by the bookkeeping process. From expenses, daily transactions, cashbooks, ledgers, to business accounts, all of these fall under bookkeeping. The handling of the book of accounts is something that accountants can efficiently and more effectively do for you.
While bookkeeping might look like something that anyone can do, it’s very challenging. Yes, it can be simple in the initial stages, but as you start to advance, things get complicated. Only a qualified accountant can handle everything properly, from managing the daily expenses of your business, employee remunerations, paying suppliers, to maintaining the overall cash flow of your business.
2. Manages The Assets Of Your Business
The accountant will be instrumental in the growth of your business. It’s true, especially during times when you feel like controlling all your assets on your own is too much for you to handle. Management tasks are also something that accountants are well-versed with besides bookkeeping.
An accountant can even act as a manager on your behalf when you have to go on important trips and be away for a few days or weeks. They can oversee business operations and other employees for you. For management purposes, an accountant can also do the compiling of business reports on your behalf.
The proper use of your business properties is also something that an accountant can supervise since they serve as your organization’s primary auditors.
3. Gets All Your Deductions
Most business owners would think about how they can maximize their deductions during the tax season. However, it’s a common scenario to run out of ideas by the end of the year, making it too late for you to make an impact on your tax.
An accountant can identify the potential deductions throughout the year for you. They can also give you pieces of advice as to how you can make strategic decisions for your business tax’s year-end deductions. Home office space, out-of-pocket expenses, and depreciation are only some of the items that many business owners tend to forget tracking and accounting for without the help of an accountant. Don’t commit the same mistake; don’t leave some money on the table.
4. Prevents An Audit Rather Than Solves One After It Occurs
Many business owners dread audit, and if you’re one of them, then consider that as another compelling reason to get the services of an accountant. Prevention is better than cure, as they say, but most people only think of an accountant to fix audit issues after they’ve already occurred.
Always remember that you can easily avoid audit if you have an accountant to guide and counsel you year-round.
A business gets audited for several reasons. It can be because of excessive write-offs, being too “charitable”, or too many mistakes on submitted tax forms. An accountant acts as an investor in your business; they understand how essential it is to keep everything fiscally sound.
5. Minimizes Business Costs
Another problem that business owners face are high business costs, which usually result from the lack of proper financial management skills. High costs, as you probably already know, have resulted in the collapse of many organizations around the world. Yes, hiring an accountant can be costly, but it’s way more affordable than having to shoulder enormous business costs in your organization.
An accountant will use their financial expertise to detect financial drains in your company. An accountant can also help you build the emergency fund of your business to prepare for unexpected expenses. That way, you can focus more on other equally important aspects of running your business.
As a business owner, it’s normal for you to get preoccupied with daily operations of running the business you’ve worked hard to build. Hiring an accountant means taking a step back, allowing your organization to objectively look at the bigger picture and start finding the best way to support the longevity of the company.