Advantages Offered by an Accountant to a Start-up
If you have a start-up business, bringing in an accountant can provide so many benefits. The most obvious is perhaps having someone to deal with tons of paperwork and basically cutting through the whole red tape that new businesses usually have to face. Yes, a good accounting will be able to do more for you than simply balancing your books.
Below are the most crucial advantages that an accountant can offer your start-up business:
As a business owner and not an accountant, your time is your money. Hiring an accountant buys you time to focus more on your business. Compare your per-hour rate to the cost of this accounting expert. If you are paid $150 hourly and an accounted charges $150 per month, that will be $150 well spent because there’s no way you can do all of your accounting responsibilities monthly in just one hour.
There will be lots of deadlines to meet, not to mention lots of deadlines of your clients. Remember, if you end up missing any of those dates, you will be fined and penalized by the IRS, which will be even more costly for you.
High-Value Information Source
The American tax code is not designed for individuals but rather for businesses, which are job creators. Aside from that, the tax code is by itself complex, and even with a business, you still won’t be able to benefit from it much if you don’t truly understand the code. And take note that the code is always evolving – what you understand now may be different next year. One thing’s for sure though – mastering taxes is not what you’re in business for.
Personal expenses are hard enough to track. If you throw a business into the mix, it can be chaotic. Unless you have an accountant who is seeing to it that your cash flow is well-monitored, and that your personal expenses are kept separate from the finances of your business. The IRS tends to be very strict with those who combine them. You could end up triggering an audit, and the burden of proving that the questionable expenses are business-related will be on you.
Business Growth Support
All business owners want their business to grow. The problem is when you have too much love for your business that you start making irrational emotional decisions. We all know what emotions can do, and that is why working with an accountant – a person who has an objective detached view of your business – is often a wise move.
Lastly, working with an accountant doesn’t just mean having someone to balance your books. It also means having professional help with many other things, like business incorporation, business deductions, paying salaries, and so on. Of course, accountants are not all the same, so you have to do your homework before actually choosing someone.