As the owner of a small business, you most likely feel that your business is too small for the need of an accountant. You are not a big corporation, so you will easily be able to handle all of the finances and record keeping , right?
That is how many small business owners feel, unfortunately that is not the case and many will run into a number of financial and tax issues when not using an experienced accountant. Cash flow management is the one area that many small businesses struggle with, as their money on hand will fluctuate frequently so they may not have the actual amount on hand. They will also struggle with projection trends of their future cash inflows and outflows, in which many times they end up guessing wrong. This leaves their inflows in the negative, due to their miscalculation, in which they had taken out more money than what they actually had made. This can leave any business owner in even more debt than they already are.
Payroll can be another area that business owners have trouble with. Have you ever had difficulty in finding exactly what to pay your employees, what the new minimum wage is, the amount of taxes taken out, etc? You are not alone. Many others have felt the same as you and if you complete your payroll incorrectly than it could lead to dealing with the IRS for taxes owed for not only you, but your employees as well.
Lastly, one of the biggest areas that businesses can have a tough time in is with taxes. Everyone dreads having to file their taxes each year, the filing process is confusing and ever-changing tax laws make it worse. With business taxes, there are even more laws which makes the filing process even more complicated and if your tax information is incorrect and you owe money, you and your business can be in trouble with the IRS. The IRS is strict and not forgiving when it comes to not paying your taxes, which can lead to them freezing your assets and taking all of it until you have paid them back or they can take your business, car, and family home.
Having a certified, experienced accountant is important to any business, even if your business feels too small. An accounting firm has specifically trained individuals that will know how to properly record and track your business’s finances, but also know how to complete both your payroll and taxes properly, so you can avoid any trouble with the IRS. It may seem more cost effective right now to not invest in an accountant, however, the fines and debt for inaccurate records and taxes can add up very quickly. You will also be able to avoid any trouble with the IRS and tax professionals will be able to find legal deductions to help you keep more of your tax money. Hiring a knowledgeable and skillful accountant can not only help you to avoid these pitfalls but to also help your business run more efficiently, leading to prosperity and growth.