Note – This awesome post is written by a guest blogger, Chelsea Lamb with businesspop.net.
Have you thought about hiring a professional accountant? If you run a small business, outsourcing your accounting is a no-brainer. Investing in professional accounting services from a company like Incite Tax & Accounting will help you save time and money, avoid tax-time stress, keep your employees happy, and more!
Good accounting practices are the backbone of every thriving business, big or small. Keep reading to learn about all the wonderful ways your business will benefit from an accountant and why this investment is more than worthwhile.
As a business owner, knowing when to delegate and outsource is key. You just don’t have time to focus on every administrative task that keeps your business running. Instead of spreading yourself thin and risking costly errors, it’s better to leave the complicated financial stuff to the pros. If you’re having a hard time justifying the costs involved in delegating work, remember that your time is valuable too! Every minute you spend on bookkeeping is another minute you could have spent growing your business.
Keep Your Employees Happy
Outsourcing your bookkeeping won’t just make you happier, but it will make your employees happy as well! Handling payroll is a time-consuming process, and mistakes are inevitable if you try to rush through it. You could forget to pay overtime wages or withhold taxes, or you might just forget to do payroll altogether! Hiring a bookkeeper to handle your payroll will help you avoid all of these issues and ensure your employees receive their money on time.
While you’re at it, consider setting up payroll direct deposit through your QuickBooks payroll software so your employees can receive their checks the same day payroll is processed. This free option guarantees that your employees always get paid promptly while minimizing headaches over last-minute changes.
Save Money on Taxes
Business owners have to comply with several different tax laws. For example, small businesses are expected to pay estimated taxes to the IRS quarterly. If you have employees, you will also need to pay employment taxes which include federal unemployment tax, federal income tax withholdings, Social Security, and Medicare. To complicate things further, the amount of tax you are required to pay depends on how your business is set up. Getting everything right is tricky unless you have accounting experience. According to PR Newswire, about 30% of small business owners think they are overpaying on their taxes!
Claiming all of the deductions and credits you’re entitled to can help you save a lot of money. Of course, navigating tax laws and reviewing yearly updates to the tax code is enough to give any business owner a headache. A great accountant will take on this stressful affair and help you avoid paying more taxes than you need to.
Breeze Through Audits
Hiring an accountant to handle your taxes will reduce your risk of being audited by avoiding calculation errors or omissions on your returns. Still, there is always a chance that your business could be audited, especially if you’re suddenly bringing in a lot more money than in previous years. Your accountant can help you navigate an audit and assemble all of the requested documents, so you won’t have to take precious time away from your business to handle this yourself.
Avoid Cash Flow Disasters
Cash flow is the lifeblood of your small business. While your profit and revenue statements can give you some idea of whether or not your business is thriving, it’s cash flow that matters most. Cash flow is the amount of cash flowing into and out of your business at any given time. Tracking this valuable metric will ensure you always have cash on hand to pay expenses including payroll, utilities, rent, and supplier invoices.
Cash flow issues can spell the end of your small business. In fact, this is the most common cause of business failure! Make sure you stay on top of your cash flow with effective accounting software or hire an accountant to help you out. If you decide to go the DIY route with this one, be sure to consult an accounting professional occasionally to go over your cash flow projections and identify weak areas.
Make Better Business Decisions
Accountants receive exhaustive training in tax preparation, bookkeeping, budgeting, financial reporting, and business law. If you lack this kind of expertise, it really pays to have a professional accountant on your side. Your accountant can help you navigate difficult business decisions by reviewing your financial situation and creating financial projections. Are you thinking about hiring more employees? Expanding into a new market? Leasing another business location? Your accountant can offer some valuable guidance as you prepare your business for the next big step.
Grow Your Business Sustainably
Believe it or not, there is such a thing as growing your business too quickly. Fast business growth creates new expenses and operational demands that can hurt the quality of your product, cause employee burnout, or drain your cash reserves. Growing your business should be a carefully controlled process.
Again, this is where an accountant can help! First of all, your accountant can advise you on choosing the best legal business structure to minimize tax obligations and limit your personal liability as your business grows. Your accountant will also help you stay compliant with payroll regulations as you expand your team and hire employees. Most importantly, an accountant will ensure that your cash flow remains balanced. It’s all too easy to let cash flow get away from you when you’re focused on growth!
If you’re looking for ways to improve your business, hiring a professional accountant should be at the top of your priority list. Your business will benefit in countless ways by seeking the advice and expertise of a great accounting specialist! In the end, great budgeting, tax planning, cash flow management, and financial decision-making will lead your business to success.
Whether you need help with bookkeeping, cash management, or tax preparation, Incite Tax & Accounting can help! Contact us today so we can help you get your business on the right track. Call 801-999-8294.
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