Three Reasons Why Your Small Business Needs a New Accountant

Small business owners are astute when hiring staff. Ideally, staff who generate revenue are worth hiring as they bring in money for their wages. Non- revenue-generating staff like finance professionals may not rank high on the list of priorities for a small business owner.

So, who does the accounts? Well, a handy excel spreadsheet where income and expenses are meticulously recorded. Or perhaps a free app online that allows tracking transactions and auto-generates invoices and receipts? These simple options may give the small business owner the impression that they have their ‘accounts’ on offer. However, true accounting does more than take information – it gives back information as well.

Accounting is an integral part of any profitable business. Can you imagine maintaining your health without breathing in oxygen? Oxygen is essential for survival and must be in the air you breathe. Similarly, an accountant is indispensable, regardless of the size of your business.

Here are three reasons to hire one for your small business.

Getting Finances Right as Early as Possible

Do you have independent business accounts? Are you aware of all the government regulations to abide by? Are your financial reports telling a story that can guide decision-making? You may be excellent at bookkeeping but an accountant looking at your books will ensure the numbers reveal the potential for business profitability.

To Handle Employee Affairs

Even with just a few employees, you need an accountant to handle their affairs professionally. This will ensure proper classification of workers as either independent contractors or full-time employees. The IRS needs these records to determine your business tax obligations. 

An accountant will control payroll and payment processes, and ensure that 1099 and W-2 forms are sent on time.

To Ensure Your Budget Is Accurate

If you intend to maintain a successful business, it is essential to make informed financial decisions from the beginning. Your budget is critical to the running of your business. It will determine how much you will achieve within a specified period. Therefore, you must get it right and ensure there are no errors. 

An accountant will analyze your budget to ensure it will work for the goals you have set, by being able to spot errors quickly and make essential changes.