Being the owner of a small business, you are probably used to doing everything and that includes managing your company’s accounting, bookkeeping, payroll, and taxes. With all of the software available now to help you complete these tasks, you most likely believe that you have no need to waste money on hiring an accountant. Many other small business owners have felt the same way, until they come to find out that an accountant offers exceptional value to a business that those programs cannot give to you. These are 6 reasons why you should invest in having a year-round accountant even if you feel you can do the work yourself.
1.) Doing It Yourself Can Cost You Time and Money
You are used to doing everything in your business, so why wouldn’t you bypass the cost of hiring an accountant and do the bookkeeping, payroll, and taxes yourself? Well, think about this, if your car breaks down and you are not a mechanic, do you not take it to an auto shop to be fixed? Or if your roof needs repair, do you attempt to repair it or hire a great contractor? Hiring a professional to do your bookkeeping, payroll, and taxes means that the work is done better in one-tenth of the time. Not only will your time be saved, but having an experienced professional can help to keep your business from having to pay fines, fees, and penalties from inaccurate taxes and books, as well money-saving deductions you may not be aware of.
2.) Tax Laws and Regulations Are Constantly Changing
The government loves to change their tax and payroll laws on a whim, and its not just federal that you have to worry about. States are coming up with new laws and regulations all of the time as well. For instance, Massachusetts just started their Paid Family and Medical Leave contributions, where business owners are now responsible to either take them out for their employees or take out a percentage from their employees pay and then cover the remainder, depending on your business’s employee size. Not only do the laws and regulations continuously change, they can be confusing too. Having a professional who understands the laws and regulations will help keep your business compliant and in the clear.
3.) Mistakes Can Be Found and Fixed Early On
When you are working on either your bookkeeping, payroll, or taxes you may be making mistakes and not even realizing it. Having an accountant or accounting firm looking over your books will pinpoint any mistakes that were made and quickly fix them for you. Software such as QuickBooks or TurboTax, just lets you plug in the information, those programs will not notify you if any mistakes or inaccuracies are made. Without an accountant you won’t find out until tax season and possibly getting a letter from the IRS or worse penalties and fines from them. Having any mistakes fixed early on can also help you save; if your accountant has to go back to the beginning of the year to fix your books that could cost your business some big bucks.
4.) Accounting, Payroll, and Especially Taxes Can Be Quite Complex
Any of these three tasks can be complex and a hassle on their own, but doing all three of them on your own can become even more of a burden to you. There are a number of rules and regulations to follow in order for your books and payroll to be compliant, as well as a complicated tax code that can have you second-guessing whether you are doing everything correctly. An accounting firm will be able to take these responsibilities of off your shoulders and they will have an understanding of how each task should be done. Why spend countless hours pulling out your hair trying to figure out what information you need to plug into your books, payroll, or a tax return when you can have a knowledgeable firm do the work for you? Did you reconcile your bank statements correctly or place that business deduction in the correct tax category? An accountant will accurately complete and categorize everything for you so you can focus on areas of your business you are more needed in.
5.) You Get Year-Round Advice
As a business owner, you are used to having all of the answers and solutions in your business. However, when it comes to your accounting work you can probably use all of the help and advice you can get. As stated above, accounting work for your business can become quite complicated and understanding your business’s finances can be a confusing task in itself. Having an accountant year-round means that they will complete a monthly financial statement for you to go over what that statement is trying to tell you about where your business currently stands and what actions you should take to reach the goals you want. An accountant has become more than someone you meet with once a year to do your taxes, they have become strategic partners that will help guide you to making the most profitable decisions for your business.
6.) Get More Than Just Annual Tax Prep, You Also Get Tax Planning
Proactive firms, such as ours, schedule our clients to come in well before tax season begins so we can sit down with them to create tax saving strategies to help them lower their tax bills. You can complete taxes yourself through an online software or you can go to a tax preparer who will do your taxes, but you will not be receiving the benefits of tax planning strategies. The software and tax preparation businesses will plug in the numbers and you pay what you have to pay. With an accounting firm that does tax planning, they will sit and discuss when, where, and whether to invest in certain business transactions that will help you reduce taxable income, lower your tax bill, or eliminate certain taxes. Tax planning is also not just once a year, as your income and expenses constantly change and working with an accountant year-round can help save you at the end of the year.
The cost of paying for an accountant can be quite intimidating, as any business owner hates seeing more money leaving their business. However, an accountant will usually pay for themselves by helping you to save more time for you to be working on areas of your business that will make you more money; because let’s face it, you doing the bookkeeping work won’t be increasing your profits. An accountant can also provide your business the value of saving money and increasing profits, as well as help guide your business to grow smart. You hire a number of professionals in your everyday life to help you because they can do it better. Why would you not want to invest in an accountant to help your business?