Why Do I Need An Accountant For My Small Business?
Running a small business can be challenging.It's not just the financial stress that comes with running a business but also the emotional strain of balancing your needs with your employees and clients.
As a newbie business owner, you have to work hard to answer the needs of your clients and your staff while also making sure that all the paperwork gets done.All this while you find the time to run errands and meet clients or suppliers.At times, you even need to do everything yourself if you don't have the resources to hire your own staff.
Time is your biggest asset, so you must decide how to spend it. So, if all these sounds too much for you, you might want to consider getting one of the most important tasks out of your hair.It's time to hire an accountant for your small business!
According to Onpay Small Business Finance and HR Report, only 30% of SMEs work with accountants. If you choose to go without hiring an accountant, you might be spending and wasting more resources than you know. Here's why a good accountant can help with this and more.
What is an accountant?
An accountant records and reports financial transactions and maintains records of assets, liabilities, and equity. They also provide financial services in tax planning and tax filings for companies preparing their financial statements.
Accountants are experts at running businesses and keeping them financially healthy. They can help you with business management and all your day-to-day finances and ensure your business growth is in good hands.
What are the duties of an accountant?
There's a lot to track when you're a small business owner. It's an intense, busy time—and it's easy to lose track of things. That's where an accountant comes in. They're responsible for the following:
Financial statements
As a small business owner, you will need to prepare financial statements. Financial statements show how much money has been received and spent at a particular time. This information helps you understand how much money is available for future investments or expenditures. It also provides insight into how much profit or loss has been made during the year.
Business income tax returns
In addition to helping you with your finances, an accountant can also help you with other essential areas of running a small business. When you hire an accountant, they will determine what kind of return your company needs based on these factors.
For example, they can help you determine whether or not you are paying enough federal income tax by looking at your financial statements, including your cash flow statement and balance sheet. This information will give them an idea of whether your business strategy is making enough money to cover all expenses.
Business and financial decisions
An accounting professional will also keep an eye on your business. Are you running a deficit? Do you need to cut back on expenses? An accountant can ensure that your numbers are accurate and up-to-date so that you don't incur unnecessary debt or penalties at tax time.
Internal audits
An accountant can ensure the business's standards conduct your internal audit and that it's accurate and complete. They also ensure that all financial records are kept in order, which helps you avoid accidental or unauthorized charges.
Help with growth and expansion plans
Finally, a business accountant can help with growth—whether it is through hiring new employees or expanding into new markets. An accountant knows all kinds of tax laws and regulations that will help keep your business legal in every way possible—so that everything will be taken care of when it comes time for tax season!
Stay on top of tax laws
Do you have a lot of laws and regulations that apply to your small business? Perhaps your company is undergoing an audit? Or is it tax season? An accountant can take care of these tax codes, tax breaks, tax deductions, tax liabilities, and other issues to ensure that your business income and expense reporting has regulatory compliance with state and federal regulations.
Why do I need an accountant for my small business?
Hiring an accountant can help you keep your head above water, focusing on what matters most: growing your business and making it successful in the long run. There are many reasons why you might need an accountant for your small business. Here are some:
You don't know how to run a business.
You may be great at the creative side of things. Still, when running a company, you might struggle to keep track of things like payroll, business taxes, income tax advice, and other accounting tasks essential for keeping your business running smoothly.
You're not good with numbers.
If you're not good with numbers and would rather spend your time doing something more fun than crunching numbers all day (like reading novels or watching TV), then getting an accountant is probably not what you should do right now.
You need access to valuable financial advice.
A public accountant can also help determine what it will cost you to run this business each year—and that information is invaluable when figuring out how much money you should put aside for tax filings and other expenses. If you don't know how much money it's going to take to run your business, how can you make a proper business plan for it? You can't plan if you don't know how much money it will take!
You need an accountant to help you keep your books in a way that will allow you to build a successful business.
Finally, having an accountant on speed dial means that when something goes wrong with the books (and it will), they will know right away and keep things running smoothly until things get back under control again.
Accountants can do a lot for your small business
Let's face it: business accounting tasks are a big deal. It can take time, and it can be tricky to do well. If you have a small business, the last thing you want is to spend that time and effort on something that doesn't need to be done. Hiring an accountant is one of the best ways to get a handle on your business finances and ensure that everything is taken care of in a way that works for you.
Optimize your small business's financial performance with Ursa Consultants
At Ursa Consultants, we believe every business should have access to the same excellent accounting and bookkeeping services. This is why we work with businesses of all sizes—and as we think in our business clients.
Whether you're just starting or looking for help with your current financial situation, we want to partner with you to maximize your business potential. Our financial advisors and professional accountants are here to help you simplify your financial planning, find ways to save on business taxes and get the most out of every dollar that flows through your company.
Drop us a line at jace@ursaconsultants.com, and let us know what you need!