If you’re a self-employed person with no employees, an independent person with a small team, a small company, a start-up, a new venture or a limited company; managing finances is the most challenging part of any business. With the help of experienced accountants and tax advisors, you are more likely to survive hard times and gain the most during prosperous times. Hiring an accountant may seem like an unnecessary expense initially, but you’ll be saving a lot more than your costs in the long run.
All businesses evolve slowly, and your accounting methods must also evolve with time, but most people decide to stick to older ways. Therefore, small businesses often make the mistake of managing their finances on their own, which turns out to be a huge problem in the long run. Thanks to online accounting solutions such as Xero and Quickbooks, it makes tracking the flow of money easier nowadays.
1. An Accountant Saves Time: An accountant does taxes every day, throughout the year. You do your taxes once a year. Guess who’s better at it?
Accountants know the tax laws and quickly calculate the taxes, saving you a lot of time. Doing taxes isn’t rocket science, although rocket scientists also use accountants. Why? Because they stay up to date with all the latest changes in tax laws and help you save a lot of time, which you can use to do something more meaningful.
2. An Accountant Helps you Plan Correctly: If you want to retire at 40 or 55, an accountant can help you plan accordingly. An accountant will budget everything and help you plan your investments for your after retirement plans.
3. An Accountant knows What is Deductible and what is Not: A good accountant will know how to save you money and will be able to tell you what you can claim and what you cannot.
4. Need for an Accountant in a Start-Up: People generally wear multiple hats in a start-up. A single person may be handling the marketing and customer service part; he may also be the only tea maker in the company. Thus, hiring an accountant may seem like an unaffordable expense.
But managing the finances is a challenging task in itself; it also takes a lot of time and effort to learn about taxes and the latest laws. You may lose track of other activities going on in the organisation and end up incurring more significant losses. Thus, hiring a specialised person is an absolute necessity in a start-up environment.
5. Need for an Accountant for a Sole-trader: Your expenses might be simple to manage if you’re a sole trader. It’s usually a case of tracking the earned money and money spent. It becomes a bit more complicated if you use a single entity for business and personal needs. For example, if you own one car, you’ll drive it for individual and business needs. It is challenging to keep a precise track of such entities. You could accept the government’s fixed-rate or get an accountant to get you all the benefits of full exemptions. Not hiring an accountant will surely save you initially, but in the long run, you might be paying more in taxes.
6. They Prevent you from Accidental Tax Evasion: There are some small incomes in a year that are not much significant, like your PayPal money. Such money is actually an income and can be forgotten easily. A good accountant will keep track of all such miniature incomes and income from small businesses, to prevent you from one of the dumbest ways of tax criminality.
Life of a businessman can be filled with loads of invoices and receipts to go through at the end of the year. Partnering with a good accountant can help you lighten this burden that will make way for your lasting success.