Creating and realizing your dream of having your own business is a substantial undertaking. It takes a great deal of passion, time, and energy. Now that your business is up and running, the daily organizing and budgeting of operational finances become just as important as the daily running of your business.
You may have thought that you would be able to manage the accounting duties on your own. Although you know the difference between a debit and a credit, before you go too much further, ask yourself these questions:
- Do I have time to correctly set up, journal, and run reports for my business?
- Do I understand how to properly account for my income and expenses?
- Am I getting all the deductions I could be getting for my business?
- Do I know how to budget for the future?
Spending your time working on your business is your first priority. You may be thinking you will have time to set up an online accounting system or look up the new tax laws in the near future, but you may never get to it. Your days are long, and you keep pushing this chore off to another day. When this happens, things get missed and that causes stress and anxiety. Being your own accountant may not be what is best for you and your business. If any of the above questions caused you concern, then you should consider getting an accountant to take this burden from you.
Benefits of Having a Business Accountant
Understanding how a business accountant can work for you will help you in your decision of whether or not you should hire a professional to assist you with your finances. Below are five reasons you should consider hiring a professional business accountant:
- Evaluating Your Business. You can use your financial statements to assess what is working and what is not. You will be able to see where your money is being spent and if it is conducive to your business. You should be able to understand and see if there are expenses that can be reduced or if there is an area that could use more attention. Your accountant will be there to guide you through this process.
- Claiming Deductions. An accountant will learn and understand your business and industry and can assist you throughout the year in planning your deductions.
- Saving Time and Frustration. Spending time figuring out how to journal your expenses and income, learning how to run reports, and worrying about what you are missing is time away from working and growing your business. A business accountant can work with you from day one to set up your system based on your business needs and manage your accounting ledgers.
- Filing and Compliance. Having a professional keep your records helps you avoid audits and ensures timely filing of all financial statements and taxes.
- Planning Future Growth. Being able to look through your year's financials will enable you to assess the highs and lows of your business. It will allow you to create a budget and plan future projections.
Hiring Your Business Accountant
You will want to find an accountant that you can easily work with and trust as this person can be a great financial advisor to you. Give yourself time to talk to a few accountants to find a good fit for your business and for yourself. Ask about experience, how they plan on helping you grow your business, and what the hourly fee and billing structure is.
You can also take into account how many times your accountant wants to meet each year. Meeting several times a year is recommended. It could be even more advantageous to meet every quarter. This will allow you to clear up any questions or concerns you are having and plan for the next quarter. If your business does not require that much accounting procedure, then meeting a couple of times a year may be all you need.
Once you have found a professional that fits your criteria and you are comfortable with them, you will find that the investment in their professional financial assistance is well worth the additional expense. Often, they will have saved you much more money in the long run, and you will have had the freedom to concentrate on your business and keeping your customers happy.