There are currently 1.3 million accountants in the US that are helping small and large businesses keep their finances in check.
Accountants provide a host of benefits, such as keeping a tight book, furnishing a comprehensive business plan, and providing expert taxation services. There’s a reason why they’re often included in one of the essentials when setting up a local business.
If your business is looking for a financial powerhouse that can get your house in order, you should look into the possibility of hiring a competent accountant. In this way, you won’t lose track of your finances and overall business goals. The most reputable accounting firms employ experienced accountants, such as Archimedia Accounts.
Hiring a reliable and experienced accountant provides plenty of advantages to your business. Accounting firms offer a wide array of services from business planning, bookkeeping, accounting, to tax planning.
Here’s a list of things they might have to offer:
Bookkeeping
Accountants make exceptional bookkeepers. They have a keen eye for revenue streams particular to your industry and can ensure your financial system is in outstanding condition.
Looking over your day-to-day financial activities is something that accountants are built for. From submitting a payable purchase order invoice to preparing bank deposit statements, these little tasks can pile up pretty fast, especially if you don’t pay enough attention. Failure to submit all transaction information daily can create chaos in your recordkeeping systems.
Even if you think you have the time and skillset to perform the bookkeeping yourself, you’ll still need a bookkeeper to lay down the brickwork for your accounting system.
To establish their accounting mechanisms and keep up-to-date with transactions until stable growth is sustained, many businesses acquire the services of a part-time bookkeeper. Once this growth is attained, a company should then have full-time accounting services.
Minimizing Business Expenses
Business owners subject themselves to unreasonable financial expenses due to the lack of financial management qualities. As a result, many businesses falter before they can even find any solid footing.
Although, a good accountant is sometimes hard to afford, hiring one will pay dividends in the long run. This is because accountants that have a shrewd financial sense are very good at identifying financial leakages in a business.
Some ways accountants can help lower your business costs include:
- By bringing in more money and reducing expenses, they’re able to provide positive cash flow.
- Ensure strict financial controls by removing errors in balance sheets and cash flows statements.
- Making the best use of financial software.
- Taking care of your year-end accounts on time.
Saving Time
As a business owner, you’re always on the clock. Thankfully, hiring an accountant gives you the freedom to tend to other pressing matters for your business.
As an employee, meeting your tax deadline isn’t a problem. Similarly, as a freelancer, you know you have a quarterly tax cycle. But, when you’re running a business, the deadlines can stack like a house of cards. To ensure you don’t land yourself in trouble, there are client deadlines, IRS compliance dates, and tax schedules you have to keep track of.
Are you sure you can invest this much time and effort to take care of your finances? If not, then an account is worth the investment–it’s a safe pocket for your business.
Financial Planning
Many accountants are also expert financial planners. They can help you allocate your assets to the right investments. Hiring an accountant who is also a licensed financial advisor is highly beneficial for your business and for yourself personally.
You can get expert investment advice to help you in creating comprehensive wealth and financial management plans. In addition, you’ll also benefit from risk management, estate planning, and retirement income strategies that a financial advisor and accountant provide.
But of course, it’s still your discretion if you want to hire a separate accountant and a financial advisor. The important thing is you’re consulting experts to guide you.
Reducing Tax Liability
An accountant’s job isn’t just restricted to submitting forms and playing with numbers. They also have the expertise that can help you identify tax loopholes and establish profit-maximizing tax mechanisms. Within the framework of financial legalities, they’ll help you capitalize on valuable tax discounts and open new possibilities for your business.
Accountants provide tax counsel to help you in preparing your estate tax returns or annual tax return. They administer payroll, prepare budgets, and audit financial information, financial statements, and business plans. An accountant also suggests tax-saving strategies and advises opening an individual retirement account (IRA) to help lower tax burden.
Tax is a tricky business. Hardly any business owner knows the nitty-gritty of tax regulations, expenses, and reporting criteria. Thankfully, an account can paint an extended picture of your tax condition. They take everything into consideration–from organizing personal tax returns to finalizing your annual contracts, corresponding with HM Revenue and customs, and other organizations. They also go above and beyond to make sure your payroll is functioning at optimum levels and are adept at recognizing financial bug that can pose potential harm to your business.
Managing Business Assets
While you’re busy handling your business, an accountant will work to ensure your business assets are protected. Besides having a treasure trove of tax knowledge, accountants are also trained to tackle different management operations.
For instance, when you’re not working on your business location, accountants take the role of the manager in your absence. They compile business reports, solve financial riddles troubling employees, and overlook important transactions.
The Verdict
Reliable accountants who know what they’re doing can accomplish a lot for your business. They can get you of sticky spots, such as tax penalties, and keep a well-organized history of your financial records so there aren’t any ambiguities. They’re also great if you want to keep your finances protected and business afloat.
