Why Every Small Business Owner Should Consider Hiring an Accountant

After the economic slump of 2008, the economy has slowly recovered and in recent years, small businesses are now on the rise.  Millions of people have pulled themselves up by their bootstraps to start their own ventures, either large or small, in order to pursue their true passion or to utilize their strengths.  Millennials especially are more independent than previous generations and seek to create their own futures and pursue their own desires—these reasons and more have all contributed to flourishing young businesses that inspire creativity and ingenuity.

If you are considering opening a business of your own, opportunity abounds.  Indeed, with a clean slate the success of your business is at your fingertips.  However, this is also a time to tread carefully and build strategic plans in order to secure your financial success.  With prudent coordination, you will be able to ensure that you are not one of the 50% of businesses that fail the first year, or the 95% that fail within five years.  This is why you may want to hire an accountant to help you with these tasks.

Create a Business Plan

Before you open the doors (or website) of your business, be sure you have a plan.  After all, you do not want your precious funds to go to waste.  A certified public accountant has taken the grueling CPA exam, and would be invaluable for a new, small business. They will sit down with and ask you questions about your business.  What service or product are you selling?  How many customers are you ultimately trying to accommodate?  Where do you see your business in five years?  A qualified accountant will ask you these questions and more to gauge what you want your business to be, and will help create a structured plan in order to get you there.  Don’t open your business empty-handed!

Plan Ahead
Many people start a business with very limited funds, and therefore need to pick and choose what to invest in when first starting out.  However, not everyone makes the wisest decisions when they begin. How do you know if you are making the correct financial decisions?  If you are someone with limited accounting experience in the business arena, then an accountant can help you make those decisions.  Certified public accountants are qualified to solidify a budget for you in order to reach your financial goals.  What you should look for is an accountant who has experience or knowledge of your field.  If you are creating a highly technical business in software development, for example, hire someone with experience in the field.  If you create designer jewelry, however, you may want to find someone with knowledge of the fashion industry or the business of jewelry.  You may be surprised at what you find—accountants can have a wide background in many areas, and their budgeting skills can keep you from financial pitfalls in the future. You can also consider hiring a CMA or Management Accountant, their duties can include product/service development, analyzing financial data, creating budgets, maximizing expenditures, providing financial reports, and basically helping the company make informed business decisions.

Maximize Your Tax Refund
One of the biggest draws to small businesses is the amount of tax refund you are able to receive.  There are many things you are able to write off if you are savvy to the rules.  While this a huge benefit to owning a small business, there are also many common problems first-time business owners make that can throw a blow into their finances.   Some of these common problems include the failure to file on time, forgetting to make quarterly estimated tax payments, taking too many deductions, and worst of all, keeping poor financial records.  A certified public accountant or Enrolled Agent can explain how to avoid these mistakes and give you a step-by-step guide on how to best prepare yourself for tax season.  As your business grows, you may want an accountant to help organize all of your information and maximize your deductions for you.

In the end, you want someone on your side who can look out for what’s financially best for you.  Investing in a high quality accountant will provide you with the services you need to make sure that you enjoy all of the monetary and non-monetary aspects of your business endeavor.

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