As a business owner, you’re probably aware that you should be working with an accountant. But did you know accountants can help you with more than just tax and financial statement preparation?
In addition to helping you with the usual tax and accounting work, working with an accountant can save you time and money, help you reach your goals and reduce stress, as well as point out strengths and weaknesses in your business.
Here’s a more in-depth look at how working with an accountant is good for your business.
1. Save Money
People are sometimes reluctant to hire an accountant because they think it will be expensive. When you compare the cost of working with an accountant to the money you save by doing so, you will see that it’s actually quite a bargain. Accountants can save you money in many ways, including making sure you’re claiming all the tax credits and deductions you’re eligible for on your tax return.
Another way accountants save you money is by doing things accurately. All too often, business owners hire a bookkeeper because they are cheaper than an accountant. This is great if the bookkeeper knows what they’re doing, but if they don’t, this can be a costly mistake.
Many bookkeepers don’t understand the proper accounting treatment of transactions such as disposals and purchases of capital assets. These items don’t get recorded in the proper general ledger accounts, causing your accountant to make a number of adjusting entries when they prepare your financial statements. This often costs you money.
2. Save Time
If you’re a business owner who’s been trying to do everything yourself, hiring an accountant will save you a lot of time. An accountant can complete day-to-day business tasks for you such as data entry, account reconciliations, and paying bills.
There are also a number of bi-weekly and monthly activities an accountant can do for you, such as calculating your payroll, updating your bookkeeping, reconciling your accounts receivables and accounts payable, and estimating your taxes.
Not only will having your accountant do these regular activities save you time on a regular basis, but it will also cut down on how long it takes your accountant to prepare your year end and tax return, so it’s a win-win.
3. Reach Your Goals
Whether your business goals consist of reaching a certain income level, growing to a certain number of staff, or expanding across the country, your accountant can help you reach these goals. Accountants are trained in many areas of business besides tax and accounting. They’re also business strategists who’ve often completed training in marketing, operations management, and even human resource management.
Whatever your business goals are, you’re missing out by not sharing them with your accountant. They can offer you insight as to whether those goals are achievable. If the goals aren’t achievable, they can tell you what changes you need to make in order to work towards them. If your goals are doable, they can help you with the specific steps you need to take to reach those goals.
When we tell people our goals, we are more accountable and increase the likelihood we will reach them. Who better to tell than an accountant who can help you get to where you want to be in your business?
4. Reduce Stress
Some people find it stressful working with an accountant. If this is the case, maybe you need to find a new accountant.
Working with an accountant shouldn’t increase your stress level. By working with an accountant, you are teaming up with someone who knows the accounting and tax requirements of your business. This means you won’t have to worry that you are paying too much tax or that your payroll is calculated incorrectly.
5. Know Your Strengths
When an accountant prepares financial statements at year end, they often analyze the statements for changes from year to year. This includes looking at the key performance indicators for your industry. What these KPIs tell you is what your business is excelling at and where you could improve.
Once you know this information, you can continue to focus on your strengths, and your accountant can help you take the necessary steps to improve the KPIs that aren’t in line with industry standards.
If you’d like more information regarding how Virtual Heights Accounting can help you in your business, give us a call or fill out our contact form. We’d love to help you succeed in your business.