There are a myriad of things that need your attention when you are running a business: you need to make sure you have quality products or services for your clients, you have to deal with customer service, production cost, marketing, and the list goes on and on. Just when you think you have everything and everyone you need in order to have a successful business, you realize you need someone else to help you with a long list of tasks.
One of the most important things on your task list is that you need to have good accounting records. Many new business owners think that they can skip the accounting part because it’s just numbers and anybody can do it. That is your first mistake. There is so much more to an accountant like Davie Kaplan than adding numbers. Here’s what accountants can do for your business:
- Manage complex accounting tasks and run financial systems. There are accounting tasks that are fairly easy, but there are plenty more that are quite complicated, and this is exactly why accountants had to study for years in order to acquire knowledge on accounting procedures. When accounting mistakes are made, it could cost the company a lot of money or end the business.Included in their training is not only managing accounting tasks, but also the latest financial systems, which includes software and other tools that help them prepare reports and accounting statements. They do it faster, which makes them more efficient. They can do more tasks in a day.
There is a difference when you simply hire a bookkeeper rather than a certified accountant. Bookkeepers only record financial transactions whereas accountants deal with more complex accounting problems.
- Handle tax. It cannot be stressed enough how important tax is, be it for business or personal endeavors. Businesses, however, need to be more careful because there are a number of things that need to be considered and checked. You have to keep in mind that tax laws are not easy to understand unless you study it thoroughly. Also, these laws sometimes change and you need to be kept up-to-date or you will make terrible accounting mistakes that could cost you your company.A simple thing as a tax return may seem easy at times, but more often than not, they aren’t. Then there is also your tax bill. You may have studied how to run a business, but you certainly did not study methods on how you can reduce tax bills. It can save your company a lot of money and it can be used somewhere else. However, this should be done without breaking tax laws.
- Help plan future projects. Aside from keeping your finances straight and handling your tax, accountants can also help a great deal if you are planning future projects. If your accountant is experienced and has worked in the same type of business before, he or she can aid you in devising a plan. It is easier to know if a plan can be achieved financially or not when someone knows roughly what it would cost in total. Your accountant can serve as a financial adviser or a project controller as well.If you have a project in mind, money will always be a factor. And the only way for you to know if the company can afford such a project is to have someone who knows all of your company’s finances, such as how much the company is earning and how much money it can spare for a new project.
- Save you a lot of time. If you are dealing with complex accounting tasks, you will need to spend a lot of time learning how to do it properly. The same thing happens when you are doing the company’s tax, computing employees’ salaries and their taxes, and documenting transactions just to name a few. If you have to learn all of these, you will no longer have time to run your own company. If you have a very small business, you may have time to do some bookkeeping, but as the company grows, this will be almost impossible.Instead of spending your time learning all these accounting tasks, hiring an accountant will free up a lot of your time, which can be spent coming up with more ideas on how to make the company grow.
- Cut company expenses. Accountants may cost you money, but they can also save you more by helping you cut company expenses. More often than not, no one keeps track of the money that goes out. Then you start wondering where all of it went. The thing is that there are many unnecessary expenses being made when you are not too careful with the company budget. Also, when no one is keeping track of the money that is being spent, fraudulent activities happen and you will have no way of knowing who is doing it.Accountants can also help you out if the company is having some financial problems. They can find out which department can have less budget and still survive. Cost-cutting is normal and usually experienced by almost all companies, especially when the economy is not so stable. You simply cannot cut any department’s budget without knowing how much its operations could be affected.
People may think that accountants do not really make an impact on a business, but this could not be farther from the truth. A good accountant is an asset who can take care of your finances, tax, projects, and serve as a financial adviser. They help you become a better entrepreneur. They could also help with your assets and you will never have a problem with the law because your company will always comply with tax laws.
Some business owners have this unfair idea that accountants simply want to rip them off. The truth is that they usually have more problems regarding their finances than they care to admit. Accounting firms will help you reach your goals, not deter you from it.