Should a Small Business Hire an Accountant?

Have you ever stopped to think about the importance of an accountant?  

Big or small every business needs a professional to focus on the numbers as well as other crucial things. In this article, you will learn why small businesses need an accountant!

Most people think a small business doesn't need an accountant. Or worse, they push it off down the line thinking it is something for the future -- and they couldn't be more wrong!  By the time that happens, small problems often snowball into something much much harder to manage.

Simply put, small businesses definitely need to hire an accountant!  An accountant will work as your right-hand man: taking care of your taxes, helping you with budgeting, giving you expert advice, making sure you grow sustainably, and many more things that you maybe haven’t even considered.

Why do small businesses need to hire an accountant?

1. Taxes are tough to deal with

Taxes alone are enough of a reason to hire an accountant. No matter who you are, unless you know every rule and regulation regarding your business, an accountant becomes an invaluable asset.

The IRS does not play when it comes to collecting taxes. One innocent tax mistake could be the difference between having a great year and going bankrupt.

You forget to file your taxes one day and, before you know it, you need a loan to pay back what you owe. The interest payments alone will be enough to create a huge financial burden for your business.

An accountant keeps you out of trouble!

2. An accountant does way more than taxes

If you think taxes are the only thing accountants take care of, think again! Doing your business taxes is but a small part of an accountant's job.  They also help with your:

• Record keeping
• Reporting
• Budgeting
• Cash flow management
• Financing
• Future planning, and
• Decision making

All in all, an accountant knows their way around the money side of things. Even if it's not tax-related! Who's better than an accountant to help you figure out your budget for next year?  They know the details, they know the numbers, they know the history, and they can help.

You could be wasting money in places you didn't think of - an accountant will see right through that and ultimately save you money.

3. You need to worry about your business and avoid distractions

As you know, an accountant will help you with the money side of your business. And that's how it's supposed to be. You need to spend your energy focused on growing your small business into a big one.

The quality of your product, the logistical aspect of things, analyzing the competition, and many other things are supposed to be your responsibility. If you add keeping track of the details, reporting, creating a budget, and managing the cash flow to your list you will become tied up in an administrative mess and lose sight of the most important aspects of your business.  And you're bound to burn out.

It's better to hire someone to help you out! An accountant will be the right person for that job.  As they say perform your strengths, hire your weaknesses.  Unless you’ve started an accounting business most people's strengths do not reside in accounting.  And to boot, it is amazing how little people even know about accounting.

4. It'll help you keep track of things

You may not realize it yet, but running a business is hectic when you consider sales, operations, employees, human resource, customer relations, vendor relations, compliance, accounting, financing and taxes.  You're playing a game that requires attention to so many different factors and if you don't’ keep up your business is jeopardized.  But you don't have to do it alone, hire an accountant as they have the ability to wear many administrative hats.  They will make your life better and more profitable.

An accountant will provide an organized method to keep track of everything. Not only that, but it'll be a professional, more efficient way to keep track of things. It'll be way better than the method you're using on your own.

That way, nothing will escape you. And you'll get it right!

5. Accountants know the right people - and get better deals

A veteran accountant has decades' worth of experience - and also has the right contacts to help you get what you need. The best accountants don't provide their work alone, but they also bring bankers, lawyers, insurance agents and other professionals to the table.

• Do you have a legal problem regarding one of your products? Your accountant probably knows someone who can help you with that.
• Do you need to fast-track a loan? Nothing to worry about, your accountant knows someone at the bank.
• Are you looking for a new office? Your accountant probably knows a good realtor that can help you with that.

The right accountant is a one-stop-shop to solve your problems.

6. An accountant will help you expand the right way

Once you realize how important an accountant is for your small business, you'll realize how important having an accountant is for future expansion. Not only will an accountant help you expand, but will also help you figure out when is the right time based on your resources.

Maybe you were thinking about going big in five years' time. Your accountant will be able to tell you if that's right - and maybe you can do it in half the time thanks to the advice.

Perhaps it's not the time to expand right now, and a fresh pair of eyes will be able to explain to you why. That alone could save you a lot of money.

7. Two heads are better than one

Even if you think you don't need help with your taxes, budget, cash flow, expansion, financing, contacts, and everything else an accountant will help you with, you can still benefit from someone else helping you out.

If you hire the right accountant, you'll be hiring a right-hand man. Someone who treats your business as his own. Your victories are your accountants victories - and, because of that, you will have someone you can rely on. When it comes to business, that's priceless.

Sometimes, you won't be able to see the big picture and that's when your accountant will help you figure things out. Other times, you will miss a detail - and, you've guessed it, that's when an accountant comes to save the day.

8. An accountant will have business-related experience - and veteran advice to give

Small business owners have heart and hunger - but lack in the experience department. An accountant could bring the right amount of real-world experience that will save you from making unnecessary mistakes.

At the end of the day, the right accountant will bring experience to the table. For a small business, that's a game-changer.