Having an accountant is one of the smartest investments you can make for your business. They take care of time-consuming tasks, like filing taxes, and provide valuable financial advice. They can also help you automate accounting processes and manage your finances so you can focus on growing your company.
Here are the top reasons you should hire an accountant for your business:
1. Financial Reporting
An accountant can help you with the complexities of filing financial statements for your business. These reports typically include an income statement, a balance sheet, and a statement of cash flows. Companies use these to report their performance to investors or the Securities and Exchange Commission.
A top accountant in Phoenix will also be able to advise you on how to structure your business. They’ll help you decide which business structure is best for your company, considering taxation rules, liability risks, etc. They can even help you set up accounting software and teach you how to use it.
Whether you’re looking to invest in a new product line, open up a second location, or purchase a competitor’s company, an accountant can help you make sound financial decisions by providing projections and budgeting advice. Ultimately, an accountant will save you time and money by freeing you up to focus on other aspects of your business. They’ll also give you peace of mind, knowing your finances are in good hands.
2. Taxes
Accounting is one of the most essential tasks for a small business. Using software such as Xero or QuickBooks, an accountant can help you set up a system for organizing financial records, such as receipts, invoices, and sales records. This will help you avoid costly mistakes, stay compliant, and get a clear picture of your business finances anytime.
Accountants can also help you determine the best legal structure for your company and help you understand the benefits of various options. They can help you set up accounting procedures to manage cash flow, optimize tax efficiency, and create a budget for future growth.
A qualified accountant can also recommend accounting technology that will help you streamline your financial processes and save time. Whether it’s invoicing software, payroll solutions, or automation tools for accounting systems, they know what works and can connect you with implementation teams. In addition, they can advise you on preparing taxes, ensuring you’re doing them right and on time.
3. Payroll
A business accountant can help with daily financial tasks, like payroll, recurring expenses, and daily financial transactions. They can also help you find the right accounting software, such as Xero or Quickbooks. This automation can help streamline your finances by separating different spending types and making managing large amounts of data much easier.
A small business accountant can help you identify and prevent problems like cash flow dips, inventory issues, and late customer payments. Ultimately, they can save you money by helping you take advantage of tax deductions while ensuring you comply with IRS regulations throughout the year.
An experienced small business accountant can also help when you apply for a bank loan or line of credit. Banks prefer to lend to businesses with sound financial records, and an accountant can help you develop a strong business case for your application. They can help you demonstrate profitability, growth projections, and other vital aspects of your business, improving your chances of getting the funding you need.
4. Bookkeeping
Accountants can save you valuable time by managing day-to-day financial transactions, like tracking expenses, processing payroll, and reconciling your bank statements. In addition, they can advise on automation solutions to streamline your business’s accounting processes.
Using internal management reports, accountants can create budgets and forecasts to help you set attainable financial goals and guide your company in the right direction. Accurate records provide a strong foundation for strategic planning, helping you reduce tax liabilities, manage cash flow, and improve your company’s profitability.
Bookkeeping tasks include identifying, recording, and posting transactions and balancing the books (matching recorded transactions in the general ledger with those in the bank accounts sub-ledger). The five types of financial transactions that make up your business’s “books” are assets, liabilities, equity, income, and expenses. In addition, the bookkeeper might be tasked with creating and preparing financial statements such as your balance sheet and profit and loss statement.
5. Budgeting
Budgeting is crucial because it lets you track where your money goes month-to-month and helps you plan for the future. It’s also helpful if you are trying to decide whether you should invest in a new piece of equipment or hire an additional employee.
The key to creating a budget is analyzing costs and estimating revenue. Your accountant can help with this by running reports and using past numbers to give you a more accurate picture of your future.
Besides calculating your historical costs, your accountant can help you forecast future expenses, income, and profits. They can double-check your projections and advise you on what to do if they aren’t realistic.
In the short term, hiring an accountant can save you valuable time and help you avoid costly mistakes. In the long term, it can help you grow your business. So, if you’re ready to hand over the back-office tasks and focus on building your team, contact an accountant today. They’ll be worth every penny.
