The following is a guest post about the benefits of having an accountant for you small business…
When small business owners hire an accounting professional it is more common to hear them complain about it being an expense or a necessary evil, but this needn’t be the case. By asking the right questions, and taking advantage of you accountants knowledge, you could actually make your business more profitable.
5 Benefits of Having An Accountant For Your Small Business
Debt Management Advice
Accountants are financial experts, so if you feel your business needs help managing your debt then you can ask them for their advice; most professionals will be more than willing to help, or at least be able to refer you to someone who can. Your accountant can advise you of the best ways to move your debt around so as to pay minimal interest; they will also be able to recommend a sustainable debt repayment plan.
Remember it is in the best interests of your accountant to make your company as profitable as possible, which leads onto…
By hiring an accountant, you don’t need to waste money on expensive accounting software. Many small businesses are duped by advertisers into buying software they really do not need.
Cheap software, or even a well-designed spread sheet, will be able to calculate accounts payable and receivable for a small company, anything more complicated can be done by your accountant.
One of the major benefits of having an accountant is gaining access to their knowledge of the tax system. Ask your accountant about the best legal ways to pay no more tax than you have to.
Your accountant will also offer tax help when it comes to completing your returns (great for when you have a question about filing status or some other simple topic), or they can even provide professional tax preparation if you require.
You can even ask them about business expenses you may be entitled to claim back. There are certain caveats surrounding business claims for things such as company car mileage, mobile phone use and internet use and your accountant will be able to work out what you are entitled to.
They may also let you know about less well known expenses you could qualify for such as claims on fixtures and fittings, utility bills, staff magazine subscriptions and so on.
One of the biggest reasons for flawed small business accounting is mismanagement of records. Small business owners often end up paying more tax than they are due, because they give their accounting professional a poorly organised or incomplete set of records.
Ask your accountant about the best way to organize your records; they will be more than happy to oblige as it makes their job easier.
When looking for ways to save money, skimping on how you manage your finances is usually not a wise choice!
photo by jannoon028