Running a small business can be a daily challenge. There are many pitfalls to avoid and problems to solve, especially when it comes to how you will handle your money. If you have been doing your own books but the process is becoming overwhelming, this might be one of many signs that you need to hire an accountant. While only you can decide if there is enough money in your company budget to hire an accountant, doing so may benefit you financially in the long run.
1. Tax Advice
One of the most complicated aspects of doing your own books can be figuring out how much tax you owe and how to save money on what you must pay to the government each year as a business owner. Keeping up with changing tax laws can also take up much of your time, as MVU Online reports that business regulations are changing and becoming more stringent. Hiring an accountant to track these changes and make you aware of available tax breaks can save you money and allow you to focus on other aspects of your business.
2. Financial Planning
The money your business generates is probably divided up for several purposes: some may go back into the company, some goes to payroll, and some is profit that goes into your pocket. However, knowing how to budget for all your expenses and keeping a timetable to ensure they all get paid on time can be highly challenging.
Having an accountant on board can help create a sound financial plan, as the individual you hire may be able to set up a payment system that allows you to pay your bills on time. This can help you save money on late fees and overdraft costs.
3. Personal Finance Advice
Even if you have a strong background in accounting and may someday get your master’s in accounting online from NEC, having an accountant on hand may help you plan for that future. Saving for your own education, your children’s, or buying a home may all be financial goals for you and an accountant can provide you with advice that includes where to find the best tax breaks, how to set up accounts that accrue the most interest, and how to use your profits to your best advantage.
4. Finding Deductibles
Deductible expenses for business may vary from those you can claim as an individual; therefore, you may not be aware of those that could save you a great deal of money annually. Having an accountant on your payroll could mean that he or she would be working to find you the most deductibles allowed by law.
While not every expense can be deducted for business, your accountant will most likely discover savings that may surprise you. For example, if you work out of an office in your home and do much of your business online, your accountant may be able to claim the monthly cost as a business expense. This may result in a larger tax refund at the end of the year.
Hiring an accountant for your small business can have several financial advantages. Remember to consider your budget and accounting needs before you hire.