Why Your Small Business Needs Professional Accounting
As a small business owner, you wear a lot of hats. From the creative and visionary aspects to the nitty-gritty of sales and operations, you have a lot to juggle. For many entrepreneurs, bookkeeping and accounting don’t come naturally, but they are vital to your business. Investing in professional accounting services can help with so much more than just your taxes — you’ll also be better equipped to make informed business decisions and give your business a solid foundation for growth.
Accounting Accidentally invites you to read on for benefits you can expect to enjoy when you hire a trusted accounting team.
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Accurate record-keeping
Tracking transactions, reconciling accounts, and doing paperwork to keep your books current can add up to hours of busy work each week — hours that most business owners don’t have (or could be better spent elsewhere). Delegating financial record-keeping to your accounting team can ensure that it’s done correctly and also free up valuable time. This ongoing support will help you more effectively manage the details of running your business, such as payroll processing, invoice tracking, and reconciliations.
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Sail through tax season
If you’re like most people, tax laws are indecipherable and overwhelming. However, hiring professional help will alleviate some of the stress of paying taxes. In addition to having peace of mind, you’ll be able to leverage helpful tax deductions.
A professional accountant can also help you choose (and properly use) the best accounting software for your business. Accounting software can’t replace the services of professional accountants, but it can help you work with them more effectively. For example, if you pay contractors or freelancers over $600 per year (i.e., non-employee compensation), you now need to fill out a different form — a 1009-NEC instead of a 1009-MISC — and file it with the IRS by March 31st. An accountant can advise you on the finer points of how these new IRS designations will affect your business, while the right software allows for quick and easy online 1099 filing.
Evaluate your performance
The advisory role of professional accountants is perhaps the most vital service for small business owners. Having an accurate picture of your overall financial standing will help you plan for the future and make the right adjustments along the way. Accountants interpret financial data and assist you in making business decisions. For example, if your accountant discovers that you’re behind on accounts receivable, they can help you implement a good system to get paid on time — and nip any potential cash flow management problems in the bud.
Grow gracefully
While every start-up and small business hopes to grow, it isn’t easy when it happens suddenly. You may find that landing a big project or more clients means that your business needs to expand more rapidly than expected. As exciting as this is, it can be overwhelming to juggle hiring new people, choosing a bigger business space, or upgrading equipment in the midst of doing your job. Accountants can help you with the details of growth transitions — such as property tax management, payroll changes, cash flow analysis, and inventory management. They can also provide oversight, offer guidance, and ensure that you’re growing sustainably.
A trusted accounting team can make a big difference to the strength of your new business. You can let go of stress, avoid expensive mistakes, and trust that you’re on a good trajectory. Once you’ve found the right professional accounting team, life will be easier for both you and your business, so you can focus on the things you love doing.
Guest Post by Chelsea Lamb