How a Professional Accountant Can Boost Your Business Success
Entrepreneurship gives you the opportunity to take control of your own business. Although it can be tempting to keep a firm grip on every aspect of your startup's operations, there are some duties best delegated to others. Tedious yet critical administrative tasks like accounting are one example. According to Socialnomics, accounting is one of the most popularly outsourced jobs.
Accounting is a complex field. Rather than trying to learn all of the details yourself, it will be faster and easier to work with a professional accountant. In addition to helping you navigate your taxes, an accountant can help with other aspects of your business formation, too, like analyzing financial records or dealing with IRS audits.
I invite you to read on to discover how you can use professional accounting services to boost your startup's success.
Get support when selecting your business structure
When starting a business, it's smart to create a formal legal entity. This allows you to delineate business and personal finances, making it easier to write off startup costs. As Ohio University explains, the type of business structure you select impacts everything from tax obligations to reporting requirements at both state and federal levels. An accountant can explain the implications of different entity types and help you choose one that fits your needs. A limited liability company, LLC, is one popular option for small business owners for the flexibility it offers.
Identify deductions and tax breaks you may have missed
Certain business expenses can be written off as tax deductions. Personal Capital explains that this is one way to lower your taxable income and reduce your overall tax bill. You will, thus, save money, which you can then reinvest into your business. Knowing exactly what you can and can't deduct can be tricky, however. An accountant will be able to identify deductions you may not be aware of. They will also be up-to-date on the latest developments in terms of tax breaks for small business owners. The CARES Act is one example.
Take advantage of the tools at your disposal
Technology is loaded with benefits, and while there is no substitute for a professional’s insights at times, you should take advantage of technology that facilitates your daily affairs. Using a calculator, pen and pad of paper is no longer a practical solution for running payroll, for example. Instead, turn to accounting tools that can help you with everything from calculating taxes to generating routine paychecks. Additional features, like time tracking and direct deposit, help to eliminate the worry of inconsistencies or missed information. Adding the right tools to your toolkit ensures your business runs smoothly and efficiently.
Get fast facts about your company's financial health
The tasks of accounting professionals have expanded in recent years. An accountant does much more than managing ledgers these days. You can also rely on an accountant to provide insights into your startup's financial health using various financial analyses. The Corporate Finance Institute details three types of financial statements that can indicate a company's overall profitability: the balance sheet, cash flow statement, and income statement. Having an accountant prepare this paperwork for you is one way to better understand how your business is performing.
Establish a set organizational and operational system for accounting best practices
Staying on top of financial documentation is essential for small business success. An accountant can set up streamlined systems for tracking invoices, expense notes, financial statements, and more. For example, Techlicious suggests going paperless with a digital filing system. Having your financial paperwork clearly organized will make it easier to complete fast and accurate bookkeeping and tax filing in the future. It's also critical if you are ever audited by the IRS. Accounting Today reveals that the IRS is planning to increase small business audits, so this scenario isn't out of the question. It's good to be prepared.
As you can see, an accountant does more than tally up your earnings and expenses. The right professional can contribute to small business success in many ways. Take advantage of the services an expert can provide.
Author: Elena Stewart