Many small business owners don’t realize that having an accountant can be the determining factor in their success. Nearly 80% of small businesses fail within the first two years, and the cause is generally linked to poor financial management.
Despite these dire consequences, many small businesses still forgo hiring an accountant. A recent report from Xero states that 53% of small businesses don’t have an accountant. Shockingly, 27% of the respondents keep track of their finances using pen and paper.
This brings us to the pertinent question of if your business is better off with or without an accountant. This article will outline the ways an accountant can help you achieve your financial goals and set you up for long-term success.
You’ll Receive All Potential Deductions
During tax season, many business owners scramble to find ways to capitalize on deductions. Unfortunately, by the end of the year, it’s far too late to make an impact on that.
An accountant can work with you throughout the year to advise you on how to make strategic decisions for end-of-the-year deductions. It can be challenging to constantly account and track for deductibles like home office space and out-of-pocket expenses.
You Can Avoid an Audit
Another enticing reason to hire an accountant is to avoid a pesky audit. Accountants are generally hired after an audit has been received, but these individuals can prevent the entire inspection from happening.
Small businesses normally receive an audit for several reasons, including excessive write-offs, blatant mistakes on tax forms, etc. Instead of thinking of an accountant as unnecessary, it’s important to realize that these individuals can serve as your long-term partner to ensure that your business and its finances are fiscally sound.
You Can Save Time and Energy
Many small business owners think that by working on a tight budget, they won’t be able to afford an accountant.
When you factor in all of the time and energy you will spend managing your own finances (not to mention the possible errors that could warrant an audit), the benefits clearly outweigh the costs.
As an entrepreneur, your only focus should be running your business. Investing in an accountant will help you receive ongoing tactical support as far as your finances are concerned, so you can put your time and energy towards accomplishing your business goals.
You Can Take Advantage of Accounting Software
Accounting software has made it more convenient to manage the finances any business of any size. Accountants specialize in using this software to streamline the management of finances.
Hiring an accountant means that you can take advantage of Xero, the preeminent accountant software used by thousands of businesses across the world.
Xero has a wide variety of benefits, which include:
- Increased Efficiency – Xero is completely efficient, enabling business leaders and accountants to quickly access financial information from anywhere and view all sorts of calculated data.
- Effective Collaboration – Collaboration on real-time financial data is essential, and Xero allows business leaders and accountants to view financial reports together.
- High-Tech Security – With cyber threats intensifying every year, Xero has installed industry-leading security capabilities to protect organizational financial data.
Managing the finances of a business on any scale is an extremely detailed and exhaustive process, but Xero allows these entities to avoid the time-consuming methods of accomplishing their financial goals.
Xero is best used by certified accountants. Therefore, to take advantage of this software, hiring an accountant is paramount.
Hire a Certified Accountant Today!
As you can see, hiring an accountant for your small business can lead to long-term success, both organizational and financial.
Click here to schedule a free, no-risk consultation with us, or call us at (980) 202-7283 for more information.