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When to Hire a Small Business Accountant

by gbaf mag

There is a common misconception that small business accountants are expensive to hire. This is not true! Although it’s true that a small business accountant will most likely charge you more than a larger business accounting firm, the services they provide are often worth the expense. When & why you need an Accountant: What makes a good accountant? They are invaluable resources during many stages of owning and/or operating a small business. Accountants specialize in particular areas of the small business owner’s life, from planning & marketing to payroll, general ledger, taxes, & bookkeeping.

Why Choose A Small Business Accountant, When & How You Should Hire One: When you’re just getting started on your new business, the best thing to do is to get some solid planning done before hiring a small business accountant. When you’re just getting started, you may not have a clear picture of exactly what your finances look like, or how you plan to pay all your bills. This is a time when having an accounting firm to come in and help is critical. Experienced business accountants can provide sound financial advice while you’re setting up your company, analyzing your cash flow, looking for ways to increase efficiency, facing an audit, & more. After all, the most successful companies didn’t start running on paper and they didn’t become a billion dollar companies overnight.

Why Get a Bookkeeper: Even though most small businesses only employ one or two people for a specific function (typically accounting and bookkeeping), it’s still important for a small business accountant to maintain accurate financial records. A bookkeeper is the go-between for accounting and bookkeeping. Bookkeepers generally record financial transactions by manually entering the information into a spreadsheet or ledger, then using a computer software program to create and email financial reports. Most bookkeepers are highly educated and skilled bookkeepers, with many holding professional degrees in accounting and related fields. In order to save time for management and operate more efficiently, bookkeepers must understand all the accounting methods and report on financial information quickly and easily.

Why Use a Professional Bookkeeper: Bookkeepers aren’t just necessary for large businesses; small businesses as well. If you hire a good accountant, they can free up your time to handle other elements of your business or to devote it to your growing family. A small business accountant can help you set up an effective cash flow system so that you’ll always be able to make ends meet. By properly tracking your money, you’ll also be able to see where all your money is going and what you can do with it to grow your business.

Why Hire a Small Business Accountant: There are a number of benefits to hiring a small business accountant to handle your accounting needs. For starters, if you’ve ever had a problem with a transaction and needed help from someone else, your best bet is to ask them to take care of it. Accountants are familiar with all the systems in use and can help manage transactions or even refer you to someone who can. Another benefit is that most accountants offer networking opportunities that will allow you to find clients and work together when you need help. By hiring an accountant, you won’t have to pay out of pocket for a professional who may not be willing to help you out.

When Should You Hire One? When there are complex transactions to take care of, hiring an accountant is best. There are many small businesses that struggle because they don’t fully understand the tax laws and how they affect their business. If you don’t want to take on the added expense of an accountant, it’s best to start your search by searching for a CPA with a CPA license (or equivalent).

What Can I Expect From a Good Accountant? When you hire a business accountant, expect to have an entire book of information about your company that is filled out. This includes information on your finances, the employees, and any loans you may owe. You should also expect to have information on every aspect of your business dealings, including cash flow analysis, profit and loss statements, and a lot more.

Small Business Accountant services should include financial statements, bookkeeping, payroll, and taxes, as well as assistance with finding loan and credit. When hiring an accountant, ask for references and background checks. Don’t just hire someone off the phone, do your research before you hire anyone to handle your financial statements. You’ll be glad you did.

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