Should you hire an accountant?
Many small-to-medium-size businesses, particularly those just starting out, might see hiring an accountant as just another expense. While the initial and ongoing investment may put business owners off, an accountant’s services could have a great benefit and even lead to an increase in profit in the long term.
Here are just some reasons to consider hiring a business accountant:
1. Save valuable time and money
You should place a value not only on the money that comes out of your pocket, but also on your time. If you’re spending many hours managing your finances, those are hours you can’t spend on actually running your business which can lead to lost opportunities, and therefore lost profits. If you place a price on your time per hour, you might discover that you’re losing much more that what you were to lose if you hired a professional to handle your finances.
2. Manage taxes
Managing your taxes annually can be complicated, especially business taxes. If you want to make sure you don’t make any mistakes, and avoid the possibility of an audit, get a professional to do the job. Along the lines of the first tip on this list, don’t bury yourself in work that you can avoid. Focus on what you’re best at.
3. Make wise business decisions
Many critical decisions need to be made based on sound financial knowledge of your business. When you have an accountant on hand, the answers you need to make the right decision are just a phone call or appointment away. While working with an accountant doesn’t replace the necessity for you to have a healthy grasp of your business finances, not having to sift through numbers and data every time you need to make a decision is a huge advantage.
4. Manage your budget and business plan
An accountant can help you maintain a sensible budget by keeping track of all your costs and expenses so that you don’t have to. That way, when you need hire employees, for example, your accountant will know exactly how much you can afford to spend on salary expenses. This enables you to ensure your long-term business plan is in line with your budget, so you can maintain the cash flow you need to capitalise on every opportunity that comes your way.
Image credit: Michael Coghlan