According to the BLS, there are over 1.3 million accountants in America alone. Furthermore, according to The National Association of State Boards of Accountancy, around 665,612 are licensed CPAs, approximately 50 percent of the entire statistic. However, despite the availability of a vast pool of accountants, small business owners prefer handling them accounting tasks and processes on their own to save a quick buck. In fact, a recent study found that 45 percent of small businesses don’t even employ an accounting expert. What’s more startling? Around 18 percent of these companies still don’t utilize accounting software to track their expenses.
Although we shouldn’t conclude that these startups won’t succeed without an accountant, we should not undervalue the expertise and information one can offer them. After all, these experts offer services that go beyond just tax planning. They enable your small business to maintain a productive and healthy financial state and assist you in making more informed financial decisions. Ultimately, hiring an accountant will position your small business for long-term success. So, in light of this, here are a few reasons hiring an accountant for your small business is a no-brainer. Accountants will help you to know how to increase your auto business reputation easily.
They Ensure Your Business Complies with GASB 87
While you might not know about this, all local and state-governed businesses, including higher education institutions, healthcare businesses, and utilities, must comply with GASB 87 guidelines. However, ensuring GASB 87 compliance can be complicated and time-consuming. This means hiring a GASB 87 lease accounting professional sooner than later is a no-brainer.
This is especially the case if you’re doing a lease inventory. An accounting professional familiar with the GASB 87 standard will help you ensure that all your reports, calculation, and data are according to GASB 87 standards. They will also provide insight into costs and lease details, allowing you to make more informed business decisions.
They Will Help You Eliminate Stress
Stress is always involved when you handle your business’s bookkeeping and accounting processes yourself. In fact, due to the constant operational demands of running a business, adding money management to your list of tasks will exacerbate the situation tenfold. Of course, it may not first appear challenging to handle accounting software, track tax payments, and maintain records. However, it will become a struggle if you try to handle everything independently, adding more stress to your already demanding life as a small business owner.
That said, this one is the biggest Reasons to Hire an Accountant hiring an accounting professional will enable you to transfer most accounting tasks from your shoulders onto theirs. You can transfer most of your work to an accountant by hiring them. Your accountant will take care of everything, from keeping track of all your business expenses to monitoring deadlines for paying debts or taxes to everything in between. Ultimately, you’ll be able to run your company with a stress-free attitude and expand your operations without worrying about a sword hanging over your neck!
They Will Help You Ensure Your Employees Remain Satisfied
To guarantee that your employees are as happy as possible, certain accounting specialists may also take on duties like payroll management. For instance, rather than managing payroll alone, you can engage a professional bookkeeper or accounting professional to ensure that your employees are paid accurately and on time.
Such tasks leave a lot of possibility for error, and your workers might have to wait for their paychecks because you’re just too busy. Not to mention the possibility that your errors will result in them having to pay additional taxes on their income. A reliable accountant is essential to keeping your staff content, ensuring they accomplish their personal and professional goals.
Also Read – Basic Financial Planning Tips
They Will Offer Your Sound Financial Advice
Accountants are great professionals to talk with for sound financial advice. They are an excellent tool to ensure financial stability and run your small business with an iron fist. Nevertheless, working alone requires a lot of trial and error. However, if you already have an accountant on staff, you can turn to them for advice and financial data to help you make more informed financial decisions.
Therefore, use an accountant with prior expertise working with small businesses and startups in your particular sector. Based on their prior work with a company just like yours, they will give you information and wise financial counsel.
They Will Help You with Deductions
Local and state governments provide business owners with customizable deductions to meet their requirements. Because of this, most small business owners look for strategies to increase their tax deductions. Most fail without assistance because they lack the knowledge and skills necessary to benefit from these deductions.
A qualified accountant can advise you on how to maximize your deductions at year’s end and assist you in identifying these potential deductions before deadlines expire.
They Will Help You Avoid Being Audited
Another reason small businesses need to hire an accounting professional is to avoid an IRS audit. In fact, most small business owners believe that an accountant can help them after the audit. However, you shouldn’t forget that an audit can be easily avoided in the first place if you seek the advice and direction of a qualified accountant throughout the year.
There are various reasons startups may be subject to audits, including excessive write-offs, incorrect tax filing, and being overly “charitable.” Therefore, if you hire an accountant, they will ensure you don’t do anything that brings on the dreaded IRS audit!
They Will Help You Manage Business Assets
An accountant is a huge asset in expanding your small business. In fact, having an accountant on board will be quite beneficial since you won’t be able to manage every facet of your company’s assets by yourself. They are capable of doing a variety of management-related tasks in addition to bookkeeping.
Ultimately, your accountant will handle your company when you aren’t there. They will help you manage other personnel and oversee your company’s activities during your absence. Additionally, they will create detailed financial reports you can use when you return to the helm.
The Final Words – Reasons to Hire an Accountant
As obvious as it may seem, choosing to hire an accountant is not a decision you should make lightly. After all, hiring more employees increases payroll costs, let alone an accountant whose monthly fees can reach thousands. However, making such a choice will be advantageous to your company. When the accountant has finished working their magic on the financial status of your company, these thousands of dollars will seem like pocket change.