Small businesses are vulnerable. In the age of online mega-giants like Amazon, it can be hard to compete and stand out in a crowded business landscape. This means you need to handle every decision appropriately in order for your business to come out on top and be successful.
One of the most important aspects of your business is handling your finances. After all, a business’s goal is to sell a product or service and make a profit. If you’re not keeping a watchful eye on your revenue stream, your business could end up sinking rather than swimming.
To ensure your small business can compete with the big guns, you may want to consider hiring an accountant. An accountant will help you keep your business’s finances in check so that you can focus on other important areas such as marketing and customer service. Below, we’ll go over four reasons to hire an accountant for your small business.
1. You’ll Be in Good Standing with the Government
Uncle Sam can be pretty scary if you’re not following the rules. From paying taxes to paying your employees, there are numerous running parts you need to manage accurately to remain in good standing with the government. However, crunching numbers and legal jargon can be tricky, especially if finances aren’t your strong suit. That’s where an accountant comes in.
When it comes to choosing an accountant, you have a few options. You can hire a local one in your area, hire a freelance accountant if you need minimal help, or blend the best of both worlds using cloud-based software for accountants. Once you have the service you need, they can help you with a variety of legal issues, such as:
- Making filing deadlines established by the IRS
- Assisting with an audit if the IRS comes knocking at your door
- Staying in-the-know with local, state, and federal tax rules
- Minimizing your tax liability
2. You’ll Steer Clear of Costly Mistakes
One wrong mistake can send your business spiraling out of control. While some business moguls, such as Bill Gates or Jeff Bezos, seem to have played their cards right, not every business owner has the ability to navigate these waters as smoothly. The last thing you want is to miss a filing deadline and be hit with a penalty, have a cash shortfall, or have a non-compliance issue.
A trusted and reliable accountant will know your business inside and out. They’ll be able to balance your books, comply with the IRS, and help you make sense of your monthly reports. With this information, an accountant will let you know if you’re in good standing to purchase new expensive equipment, or if someone’s role in your company costs you too much money.
3. You’ll Build a Strong Relationship with Your Employees
Your employees are the backbone of your business, and a positive work environment is a great way to boost morale. They’re the ones on the front lines interacting with customers and acting as the face of your company. Having disgruntled employees can tarnish your brand’s image, which is why you want to do your best to build strong relationships with them.
One thing to keep in mind as a business owner is to pay your employees on time, every time. After all, they’re working for you to make a living, not to be your friend. Failing to pay your employees on time can lead to frustration and even legal consequences.
An accountant will assist you in managing your payroll to ensure those who worked overtime, those who received salary increases, and part-time and full-time workers are all being paid accordingly.
4. You’ll Efficiently Manage Cash Flow
Hiring an accountant will act as a second pair of eyes when it comes to the money coming in and out of your business. They can look at your customer relationship management software to see if a client’s payment schedule begins to shift or become sparse, which could indicate troubling times ahead.
Or, is a product performing exceedingly well or somewhat poorly? An accountant can analyze your reports to make changes to your inventory lineup to earn the most profits.
The Bottom Line
You may not think you need an accountant when you open the doors to your new shop. But once your business is up and running, you may find yourself knee-deep balancing every area of your company.
To prevent yourself from overworking and missing an important detail in your finances, it’s best to hire a seasoned accountant. You’ll not only save yourself time, but you’ll also make more money and be on Uncle Sam’s good side.