As a business owner, you wear many hats. Every part of your business depends on you to give your best effort. However, many business owners overlook the importance of an accountant. Not only can they help you save money, but they can protect you from costly financial mistakes. Here are some reasons you should consider hiring an accountant for your business.
Evaluate your business plan
If you are just starting a business, you should definitely consider hiring an experienced accountant to help you. They will help you craft a business plan for your small business that will attract investors and iron out daily operations. You’ll go over market strategy, products or services, financials, and other important factors. Work with your hired accountant to better prepare your business and set yourself apart from the competition.
Even if you have already started a business, an accountant can help you fine-tune your business plan. Your business plan should reflect the current standards of your daily operations and its progression. This can help you in a number of ways. First, you can attract new investors to your business by showing them your updated plan. Second, it can help you devise financial goals for you to meet. Third, you have an accurate representation of your business to date. An accountant can help you explain the assets you have built and why an investor should take them into consideration.
Help apply for a business loan
At some point in your business, you will need to apply for a bank loan to buy certain items or simply to start. An accountant can help you prepare to qualify for that business loan by making sure the necessary paperwork is filed. They can make sure you pinpoint your exact needs for the loan and how you plan to use the money. Accountants can help you identify repayment plans and how to best go about your loan. Don’t take out a large loan without consulting an accountant first.
You have a clear view of your business
If you hire an internal or external accountant they will be able to give you updated information on your business. At any time you should be able to know whether you are turning a profit or not. An accountant helps you plan for the future and your day-to-day operations. Most importantly, you can make sure you are on the right track for your financial goals. An accountant analysis can keep you on the right track. Any small business will benefit from an accountant who can help you plan for your future.
Prepare you for filing your taxes
One of the most important times to hire an accountant is when you are filing your taxes. Filing your taxes is a serious business. They will be able to file the right paperwork, make sure everything is legal, and prepare you for the worst-case scenario. The worst-case scenario is that you are audited by the IRS. An audit will require you to go through every transaction and all of your assets. This can leave a small business owner, like yourself, open to making a mistake somewhere. Having an accountant can prevent this. If you are audited, it is important that you hire the right accountants either internally or externally, such as a CPA, which can represent you to the IRS.
If you hire a firm of accountants that include CPA’s you can be much more prepared for that situation. In addition, if you are a small business or a new start-up, this is imperative to your growth. Making a fatal mistake can cost you fines and other complications. This can cost you valuable money and time when it is most important. Your growth is directly tied to having a smooth filing process. Don’t start running only to have your legs come out from underneath you.
Internal or external audit
Let’s talk about the good types of audits. An external audit by a third-party firm can help you manage new and old assets. They can give you financial advice about how your company is doing and how to plan for the future. You can also protect yourself and prevent employee theft from happening. An audit done by a third party is also a great way to prepare for the IRS, and in the case of an IRS audit, it can be shown as evidence of your assets and liabilities. It’s also a great tool to win over investors from whom you are trying to gain more capital. You can show point by point why someone should invest in you. External and internal auditors can also give financial recommendations on ways to improve and diversify your business dealings. When you have an audit done you can gain a clear understanding of your financial situation.
Observe patterns of growth
One thing that is highly underrated when talking about accounting is the ability to notice patterns. Patterns in growth or new areas of business are key to gaining success. An accountant can pinpoint where your business is struggling and where it is improving. In their detailed report, it can show where you made the most gains during the year and how to improve. You could find out that you make more money on a lower-priced product or that you are not charging enough for your services. Establishing these patterns can give your business a foundation to grow on.
Looking for an accountant? Sheffield, Trackwell, & Rapp can help your business. They have certified public accountants that can establish clear financial goals, and prepare you for tax season. Contact us today for more information!
