Why Should You Hire An Accountant For Business?
Last Updated April 14, 2023
Conducting business on any scale means you are taking a leap of faith in yourself and your ability to collect, analyze, and report every financial information. Being the sole entrepreneur with a small team of even less than 30 employees means you need some external help to manage the books. Savvy business owners play it smartly by hiring an accountant for business from the very beginning.
Managing a few hiccups is possible and therefore managing books from day one works in the favor of your business.
But wait: what sort of accountant do you need to hire?
Do you need to look for a general accountant or a staff accountant? Or can one individual fulfill the accounting needs of the firm or your small business?
Determining the accounting discipline your business is involved in, you can always look for the general practitioner.
So does this mean that small business accountants should be hired too?
Let’s figure it out.
Accountant For Businesses: The Constructive Reasons to Hire Them For Small Business
Despite the size of the business, you are eligible to pay annual taxes. More than often you will hear a small business needs an accountant to file taxes or tax returns etc. As a business owner, you need the help of an accountant in more than one way.
But remember a financial advisor is not an accountant. So you need to hire one to analyze the financial data, report it and make the necessary recommendations.
There are small business accounting companies who outsource their team of accountants for the very purpose too.
Besides that, some constructive reasons are piled down below that explain the need for an accountant for a small business accounting company.
Duties and Responsibilities of an Accountant
The duties of an accountant will vary from one company to another. According to your accounting discipline, you will hire the exact match. If you are looking for a specialist then you can always look for an:
- Forensic Accountant
- Management Accountant
- Cost Accountant
- Project Accountant etc.
Each type of accountant will provide specific services; however, a small business account can do the work for a company with less than 30 employees. So you do need to identify which accountant category you are looking for. Only then you use accountants for business services.
Growth of Small Business
There’s always a good reason to hire an accountant which also includes the company’s growth. From the formation of a business plan to planning a loan or credit, the accountant will make the processes easier for you.
It’s not necessary to hire an accountant full-time. A remote accountant working part-time can do the tasks as well. That way not only do you save the expense of an in-house employee but also get the needed task done without any distractions.
But if you hire an accountant to handle your business’s taxes, they are likely to cost less per hour. You do not have extra time to do the taxes so they will do it for you.
Business Plan Advice
Most of you may not think of involving an accountant whilst in the middle of the business plan. It is recommended to let accountants participate when writing the business plan.
They can use accounting software for financial projections and create reports. For instance, they can create forecast reports and you can revise or finalize the business plan accordingly.
Hiring an accountant for the business plan at an early stage gives you the edge to be more efficient and you can save time and money as compared to hiring later.
Complimenting Legal Structure
The legal structure of every business is different for instance some the sole proprietors, limited partnerships or corporations, etc.
An accountant can help you consider the right legal structure for your business. They can incorporate the financial plan on the basis of which you can have a better idea of which type of legal structure suits you the best.
As a businessman, you will be held personally liable for all business-related obligations. In case your business fails, goes bankrupt, etc the creditors can make a claim on your business. So to avoid any financial bump, accountants excel at guiding you about the legal structures.
A small business owner has little control over business strategies and financial concerns. Once the workload regulates soon you realize that the business plan you made might be a bit of a stretch.
Being an owner of a business is great but being overworked can stop you from delegating as well. Hiring an accountant at the initial stage helps them understand the business niche, your business strategies, and the way you want to plan the workload.
Delegating business concerns is a good start to achieving the goals – beginning with task division. Accountants have more financial knowledge, therefore, they are best suited to guide you with complex financial aspects of your business.
Handle Government Dealings
When hiring an accountant for business one of the major benefits is that you do not have to deal with government paperwork on your own.
For instance, tax filing is better-taken care of by an accountant. Also, the accountant helps the company in several other interactions;
- Completion of legal documents
- Updating about tax laws
- Preparation of annual statements
- Payroll handling, etc.
Correct tax payments can save you money. A good accountant makes sure to suggest smart ways of handling your finances.
Served for Audit
Audit representation by an expert can end the dreary nightmare that you have come to fear a lot. Statistically, it is highly unlikely for a small business to be audited however if it does happen? Then it’s expensive, tiring and stressful.
So hiring a business accountant is advised at this point. They advise you about the auditing process, help ensure no tax laws are violated, and so on.
It’s better to find an accountant who offers audit insurance. It covers the fee you pay in case your business needs a response to an official inquiry, review investigation, etc.
Using accounting software helps to interpret the audit trail. It’s easier for you to see the type of transactions that took place.
The financial data in question needs to be handled responsibly. Accountants for businesses are responsible to handle the data properly, storing, updating, and managing it with the CRM.
CRM for CPAs has essential features that are helpful in data management. The recorded information is used by business owners, investors (in case you have them), and banks too.
The accountants are responsible to follow the right procedures for data entry. Therefore using the right software makes task management easier, faster, and more efficient.
How do you make the decision when to make an investment?
You need to be aware of the recurring costs and expenses currently ongoing. You can’t keep an eye on finances regularly on top of managing the tasks.
So, when it comes to the decision of how much money to invest or what is the number of expenses so far and so on, You will require small business accountants to help you.
Perhaps, for the upcoming quarter business owners hire accountants beforehand who have the taxes, credits, tax deductions, etc. whether you want tips on how to manage your money or need help in interpreting the financial jargon in a document, you will need help from an accountant.
So how much do you know about the cash flow statements or balance sheet?
What will you do if your credits exceed the debits?
The financial reports are technical at so many levels. Despite your expertise in finance (if you are), you still may miss one major statement or a single amount and you’ll have to make the reports again.
You cannot afford any errors to be made in your financial reports, therefore the accountant, after managing the tasks properly, will update the reports when the quarter is near and vice versa.
On the basis of these financial reports, you and your investors decide about the future of the business. So are you willing to risk it all just to save a salary? We guess not.
Regulatory Compliance in Check
Every business needs to follow the rules and regulations that will affect their business in one way or another.
To help the business stay up-to-date with the regulations and policies according to the state you are doing business in, accountants for businesses are always available for small business owners.
Where to Find Small Business Accountants?
Service providers like My Count Solutions understand the workflow and the requirements of the customers, you can contact us to learn more details.
Besides this, you need to be careful when hiring a freelancer or a full-time accountant. It’s good not to rush the process of hiring from the accountant business service providers.
There’s a checklist you need to follow to ensure you go to the right one.
The Job Description
Identify the question of why you need to hire small business accountants. Despite the small-scale business, you might need occasional help or full-time help. Or perhaps the job is suitable for two accountants rather than one?
So you must talk to your team and list out the responsibilities the accountant will be accountable for.
How Much Does a Personal Accountant Cost?
The cost of accountants for business will vary according to their age, education, and experience. You may pay them between $30 – $500 an hour and so.
You can always come to a mutual point when hiring the right accountant.
So the best practice is to list out your business needs, review the tasks and then find someone you are most likely to hire. You can get a plan now to learn all about it in detail.
Assess the financial data and interpret the conclusion in the right manner. A progressive team leads you in the right direction. Let My Count Solutions steer you in the tight competition.