How an Accountant Can Help Your Start-up
There are so many benefits hiring an accountant can offer your business. The most obvious, of course, is having an expert deal with the mountains of paperwork, not to mention the red tape and all. Yes, a good accounting will be able to do more for you than simply balancing your books.
The following are the most important advantages you can expect from an accountant for your star-up:
You’re a business owner, not an accountant, so your time is your cash. An accountant buys you time to concentrate more on your business. Try to compare what you make per hour and what an accountant will cost you. If you are paid $150 hourly and an accounted charges $150 per month, that will be $150 well spent because there’s no way you can do all of your accounting responsibilities monthly in just one hour.
There will be lots of deadlines to meet, not to mention lots of deadlines of your clients. Remember, losing track of those big dates will mean IRS penalties and fines, which only adds to overall costs.
Reliable Information Source
The U.S. tax code is not structured to benefit individuals, but rather job-generating businesses. Moreover, the tax code is convoluted by itself, and it is completely safe to say that even if you do have a business, you will not be able to maximize your tax benefits unless you truly understand this code. And note that the code is always changing year after year. But there’s no doubt about one thing – taxes are not what you’re in business for.
Personal expenses alone are already hard to track. What more when you add a business into the mix? Unless you’re working with an accountant who helps you monitor your finances, and draw a line between your personal and your business expenses. The IRS tends to be very strict with those who combine them. There’s a chance you’d trigger an audit, and the burden of proof in terms of establishing that the questionable expenses are indeed business-related, is all on you.
Business Expansion Support
All business owners want their business to grow. The problem is when you have too much love for your business that you start making irrational emotional decisions. We all know what emotions can do, and that is why working with an accountant – a person who has an objective detached view of your business – is often a wise move.
Lastly, hiring an accountant doesn’t only mean bringing in someone to manage your books. It means that you will be getting other kinds of professional help in other areas too, such as business incorporation, financial reports, business deductions, and the rest. But of course, because accountants are not created the same, you need a bit of research to know who’s best for you.