Do you know one of the major reasons behind small business failure today? Cash flow problems.
Most small business owners know what it’s like to handle business matters on their own. Hence, they often avoid hiring accounting professionals because they don’t think that they need help when it comes to handling their business finances.
As a business owner, you need to reduce your workload so that you can focus on the growth aspect of your business.
Hiring a small business accountant professional is a great way to get the expert help you need when it comes to getting your financial house in order.
Read on to learn why your small business needs an accounting professional.
1. Refining Your Business Plan
As a small business owner, you need a strategic plan to grow fast. Is your current business model the most profitable for you? You need professional advice that will make your business reach its full growth potential.
For your business to realise its maximum growth potential, you must be in a position to calculate the financial consequences of every move you make. You must monitor your business’s budget and cash flow so that you can be sure of the right time to make changes.
A timing mishap that involves changes such as hiring more employees or making a huge office purchase can bring your business to its knees.
An accounting professional can tell you what reports need evaluation, and show you the red flags to look for in specific areas.
Does the business tax liability call for a change of business plan? Is there any change in customer’s transaction habits that could signal problems ahead?
You need to refine your business plan at some point to avoid costly surprises.
2. Managing Business Growth
As much as your small business strives to grow, not all growth is healthy for it. Growth that isn’t well-managed can hurt your business. Your business needs to have structures that can handle growth.
A person who understands the implication of any changes your business may experience is in a better position to manage growth.
If quick growth is not managed, your banner year may end up being the last year for you in business. Managing growth doesn’t mean stopping the business from making progress but rather helping it take the best path to continuity and stability. Prepare a business plan for growth so that you’ll have a road map that helps you navigate new challenges you’ll face.
3. Handling the Payroll
Handling a payroll is one of the most sensitive aspects of managing a small business.
An accounting professional ensures every employee gets classified, and all exemptions apply accordingly. Some mistakes such as ignoring overtime demoralize your employees.
4. Minimizing Your Tax Bill
Finances are a priority for your small business and you need to find ways to minimize your tax bill in a legal way. Matters concerning tax relief, expenses, and allowances can confuse you. How will you know if you’re eligible to claim?
Failure to know your eligibility will make you lose a lot of money every tax year-end. Are you able to carry out tax planning at the beginning of the tax year on your own? You need help from a professional.
Every year, your business will be expected to submit a tax return. You’re also expected to keep accurate and updated business records and accounts.
It’s wearisome and complex to run your business in addition to taking care of all transaction records and preparation of accounts.
You’ll lose balance and your business is likely to suffer. You need to delegate all these responsibilities to a professional so that you may focus on the daily operations of the business.
5. Staying Updated
Federal laws, tax rules, provincial and local regulations that govern your daily operations keep changing with time. Understanding the tax and financial impact of the possible changes is an important part of business accounting.
As a business owner, you must stay informed about all these changes and that means dedicating hours of research every now and then. These are hours you could be spending on running your business had you delegated your accounting responsibilities to a profession.
6. Saving Time
Since you may not have adequate knowledge of accounting, you’re likely to spend a lot of time on reporting and still end up making errors.
As a result, you may not able to make sound financial decisions which depend on the interpretation of the business accounting information.
Most small business owners argue that they’re cash-strapped and they aren’t in a position to afford an accountant, but do you know why they are cash strapped in the first place?
You need an advisor to keep your business on the right path.
7. Avoiding an Audit
There are some entrepreneurs who think that an accounting professional can fix audit issues after they have occurred. Truth is, it’s usually too late to achieve that. The best thing to do is to avoid the audit in the first place.
How do you avoid an audit?
By ensuring you’re making sound financial decisions. When you become too ‘philanthropic’ and make many errors on tax forms among other mistakes, you will definitely get audited.
An accounting professional will help you avoid all these mistakes and avoid auditing.
8. Meeting Deadlines
There are several provincial and federal regulations guiding small business operations.
Depending on the structure and type of your small business, there are several deadlines you have to meet every month. All these regulatory burdens come with deadlines.
If you file any of the reports late, there is a high chance you will face fines.
Having an accounting professional will help your business meet all the deadlines and avoid fines for late filing.
Once the pressure of meeting deadlines is off your back, you can focus on the day-to-day operations of your business.
Small Business Accountant Professional Will Help You Plan for the Future
As an entrepreneur, you’re most likely busy with normal business operations and have no time to plan your business’ future. The entrepreneur has no time to check financial records from past months and evaluate the trend of the business.
Without this knowledge, then you’re not able to tell when is the appropriate time to buy inventory and plan for big returns investments.
You need to hire a small business accounting professional for your company to remain competitive and be able to enjoy growth.
Looking to get your financial house in order? Contact us today.