A choice that every small business owner faces at some point is whether to hire an accountant and, if so, which accounting services to have the accountant work on. With 40% of small business owners concluding that bookkeeping and taxes are the worst part of owning a small business, it makes sense that so many do hire accountants. What do accountants do, though? This blog will explore an accountant’s roles and why their services are so beneficial to small businesses.
What Does an Accountant Do for a Small Business?
Contrary to what some may think, accountants help with more than filing taxes, although that is a big part of it. In fact, there are many benefits of having an accountant. Because they are trained to work with finances, they may see or know to look for what you may miss. Let’s look at each a bit more closely.
Tax Law Knowledge & Advice
Accounts know tax law better than almost anyone else. They know what you should include on your taxes, what you have to include, and what you can leave off. Accounting software, on the other hand, can’t always tell you what you are missing when filing your taxes. Accountants make sure that you file your small business’s taxes accurately and avoid possible penalty fees.
Accountants with a proactive, advisory mindset can translate this knowledge into actionable advice to improve your tax situation. By making decisions in advance of deadlines, this advice can have a significant effect on your taxes.
If you are applying for a loan for your business, you will have to gather lots of financial information and present it to the bank or loaning service. Accountants help you gather the materials you’ll need and even help you craft your application in such a way that makes accepting your application more compelling to the bank. Accountants know what banks are looking for on loan applications, so they are a handy tool to have when completing one.
An audit is an evaluation of your company’s financial information. It ensures that all your statements and your bookkeeping match and can provide a detailed picture of your business’s financial health. Accountants help with audits by checking through all your financial records before the auditor does. By correcting any mistakes they see, accountants help you avoid having to pay fees for an audit that goes poorly.
An accountant can not only advise you on the difference between good and bad debt, but they can also tell you, based on numbers, whether you should put your extra capital towards your loans or whether it would be better to invest that money back into your business. Good decisions on debt management can grow your business while also ensuring that it remains in good financial standing and can successfully apply for other loans in the future.
Business Asset Management
Accountants assist with asset management by looking at your financial statements and advising you on how to grow your business. If you have a major financial goal for your business, an accountant can create a plan to help you achieve it. This plan will help you make a lot of big decisions relating to your business’s spending and saving.
Handling Complex Business Software
Accountants generally do not bookkeep for you, so you may elect to set up accounting software to help you with that part of your finances. However, some accountants will help you with setting up and using that software. If you have an expert teach you how to use it, you increase your odds of having more accurate financial statements.
Is Hiring an Accountant Worth It?
While hiring an accountant may seem pricey, it will save you both time and money in the long run. According to a SCORE report, 40% of small business owners spend more than 80 hours a year on taxes, payroll, working with accountants, and other financial obligations. That’s a lot of time that you spend on finances for your small business. Hiring an accountant allows you to get some of that time back that you can then spend on other things like marketing or sales, creating new products, or training employees.
Accountants also save you money because they can see when mistakes are made in your finances and can then advise you where you can cut costs. The more you can save money, the higher your annual net profit will be.
Find an Accountant at Delta Wealth Advisors
Once you decide to hire an accountant, you have to make sure that it is a reliable one with all the knowledge needed to help your business succeed. Delta Wealth Advisors can help. We work with small business owners who see the importance of financial planning and are ready to take that next step towards running a successful business.Our accountants have over 200 years of combined experience and can assist you with audits, tax services, financial planning, and private real estate. If you are ready to grow your business, schedule a call with us. We look forward to helping you succeed.