The role of bookkeeping in business is one that continues to grow, with professionals having more responsibility than ever before. But that doesn’t mean every small business owner has the skills and expertise needed to manage their own books. If you run your own firm, you may not have the time or inclination to become an expert on accounting principles and tax codes. But recognizing where your skills fall short is the first step toward hiring someone else to take care of this essential job. After all, a good accountant can save you money over the long term by filing your taxes correctly and advising you on how much to set aside for taxes as you prepare your financial statements every year. If your business is only just getting off the ground, you may think that hiring an accountant now isn’t worth the cost. However, unless you plan to learn accounting yourself, it’s a good idea to hire an expert sooner rather than later. A good bookkeeper can manage all aspects of your financial records so that everything is logged efficiently and tax preparation becomes simple come April 15 each year.
How Can a Bookkeeper Help?
Bookkeeping involves more than just recording transactions and balancing your checkbook. It also involves preparing financial statements and managing your cash flow. Some skilled accountants can even assist with managing your taxes. If you hire a bookkeeper, you can rest assured that your books are being monitored on a regular basis. Bookkeepers can help your business become more efficient, which can save you money in the long run. If you have a busy schedule, you may not have time to comb through your books every month. A bookkeeper can help you stay on top of your finances by identifying issues like overstaffing or slow-moving inventory so that you can address them before they become major problems. This means you can spend your valuable time focusing on more important tasks.
Hiring an Expert is Worth the Price
Hiring an expert to manage your books may cost you more in the short term, but they will help you save money in the long term. In fact, some financial experts estimate that hiring an accountant can save a business owner up to 40% in taxes. The bottom line is that hiring an accountant to manage your books will save you time and effort. That alone is worth the cost, but adding in the extra money in your pocket at the end of the year makes hiring an accountant a no-brainer. If you’re worried about the cost of hiring an accountant, make sure you ask for an estimate for the services you need before you hire someone. Also, be sure to ask for references from businesses that are similar to yours. This way, you can see how the accountant’s services will help your business.
Bookkeeping Skills Companies Need Most
Hiring an accountant isn’t a decision to make lightly. You need to find someone who has the specific skills you need for your business. Before you begin your search, make a list of the skills you think are most important for the job. Keep in mind that your accountant needs more than just a basic understanding of accounting principles. He or she needs to understand your industry and the challenges you face. For example, if you own a retail business, your accountant must be able to track inventory, record sales and create financial statements. No matter what niche your company falls into, an accountant should be able to manage your books with ease.
Finding the Right Expert for Your Business
Finding the right expert for your company begins with an online search. Make sure to check online reviews, and interview more than one candidate before making a final decision. You may also want to talk to your insurance agent about how to find a qualified accountant in your area. If you have a strong network of business contacts, ask for recommendations for accountants in your area. You want to find an expert who has experience working with businesses like yours. Once you find a few candidates, make sure to check each one out thoroughly.
Reasons to Add an Expert Now
Accounting professionals have the skills and expertise to manage your books for you. This means that even the most complicated taxes, like those for S corporations, are a breeze for them.
By hiring an accountant, you’ll save yourself the stress of trying to decipher a tax form that’s over 100 pages long. You also don’t want to risk putting yourself at risk for an IRS audit. Audits are a very real possibility, even for small businesses.
A good accountant can help you navigate complex tax laws and keep you on the right side of the IRS. If your business is growing, you may have the option to defer taxes. This can be a great way to put off paying taxes until your company is more profitable.
However, you need the assistance of an accountant to make this happen. If you try to do it on your own, you risk making a costly mistake that could end up with an audit.
Bottom line
Bookkeeping is a necessary yet often overlooked aspect of running a successful business. An expert can help you make the most of your profits and avoid costly mistakes. Whether you own a corporation or are running a one-person shop, hiring an accountant will help you make more money and sleep better at night. Now that you know why you need an expert for your bookkeeping needs, it’s time to hire an accountant. Make sure to ask plenty of questions and check references so that you’re hiring the best accountant for your company.
