A small business accountant can provide many more services beyond the annual filing of tax returns, although this is an important aspect of the service that they offer. A skilled accountant can help business owners make better informed financial decisions regarding asset purchase, invoice payments, and on acquiring capital. They can also clean up records, save the owner time that they can spend growing the business, and can also identify effective ways in which your business could save money.
The Entrepreneurial Way
While many new business owners adopt the entrepreneurial mindset that they need to perform as many tasks as possible themselves, this particular choice could be leaving you over-burdened and could be costing you considerably more than it is saving. Even if you are relatively skilled in book-keeping, have decent knowledge of small business financial laws, and are able to manage PAYE and employee payrolls, it could still be financially beneficial to use a small business accountant for your accounts.
Time Really Is Money
It’s an old adage, but it is true that time is money, and for every hour that you spend poring over the accounts, you are losing an hour that could be spent finding new contracts, negotiating with suppliers for improved rates, or actually taking some time off work to spend with the family when you get home. What’s more, if you are doing the accounting yourself, then it is likely to be taking a lot more than an hour a month.
Expertise And Experience
Having knowledge of the latest tax laws and regulations is not only beneficial but essential. If you fail to submit a necessary form, send incomplete returns, or make any kind of mistake, it could delay form submissions. This, in turn, can lead to penalties that grow considerably over time, and may lead to you paying too little or too much – the former means that you will have to find more money later, while the latter means that you are taking cash away from the business, and cash can be hard to come by for a lot of small businesses.
Legally Minimise Your Tax Liability
Research can also help identify improved tax break opportunities; ways to legally and ethically reduce your tax liability. While every business needs to ensure that they pay the tax that they owe, they should also ensure that they are not paying any more than is required. Unless you have extensive knowledge of tax law and regulations, it means that you will have to conduct thorough research to gain that knowledge.
Cash For Investment
A lack of cash to invest can be a major obstacle for a lot of small businesses, and many new business owners make the mistake of believing that they are unable to acquire funds for investment. A small business accountant is not only able to help identify possible loans and other credit facilities, but they may also be able to determine whether you are entitled to grants and funds to help kickstart your organisation
Hiring A Small Business Accountant
Adopting the entrepreneurial approach of doing everything yourself may prove successful, but it is likely that you are missing out on financial opportunities and are certainly missing out on time that could be better spent expanding your business and winning new contracts. Hire a skilled and experienced small business accountant – it could save you time, save you money, and help raise finances for your fledgling business.