Are you ready to hire an accountant? If you are on the fence about hiring an accountant, it may be wise to learn why accountants are so important. Indeed, starting a business can be rough and having a small company can be frustrating, but having an accountant will make your business run a lot smoother. When it comes down to it, an accountant will be able to manage cash flow, taxes, payroll and more. As a business owner, it is your job to manage the business. Worrying about receivables, taxes, and other fiscal matters can affect your ability to run your company. Here is why hiring an accountant is a smart move for your small business.
- Avoid mistakes on payroll. Payroll can be a complicated process for a lot of businesses. If you are a small business, there is a good chance that you only have a few employees. However, this doesn’t mean that you don’t have large payroll responsibilities. An accounting firm, like Patrick Accounting, will be able to pay your employees and deduct the necessary taxes.
- Collect the most returns from taxes. During tax time, it can be tough to know what you should write off and what you shouldn’t write off. An accountant will know exactly what you should write off. In fact, the things that you can write off may surprise you. A simple trip out of town could count as professional development. If you work at home some days, a portion of your rent could be written off.
- Handle accounts payable. Accounts payable can be a source of tension for some small business owners, because the truth is that it can be hard to get your clients to pay you on time. Invoices and other outstanding balances can sit for months before they get filed. An accountant will be a good ally when it comes to getting invoices paid and settled, so that you don’t have to go through the process of threatening lawsuits and filing claims in small claims court, which can start to get costly.
- Manage cash flow. If oil makes your car run, cash flow makes your business run. Without cash flow – or adequately managed cash flow – your business may not run as efficiently, which is a major problem for a lot of small businesses. An accountant will be your ally in managing your cash flow so that your company has the liquid capital to cover things like production of goods and other miscellaneous costs.
- Keep your business out of the red. Cash flow is important and so is making sure that your invoices are settled, but it is also important to keep your business out of debt and out of the red. Working closely with an accountant will help your business stay out of the red and out of debt, which will allow you to run and grow your business more efficiently. In the end, it can be hard to build a successful business if you are in debt.