Benefits of Hiring an Accountant for Any Start-up
There are so many benefits hiring an accountant can offer your business. 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, with a good accountant, there’s more that you can expect them to do besides balancing your books.
The following are the most important advantages you can expect from an accountant for your star-up:
You’re a business owner, not an accountant, so your time is your cash. Hiring an accountant buys you time to focus more on your business. Try comparing your hourly rate to the cost of this professional. If you charge $200 and an accountant charges a fixed monthly fee of $100, that is $200 well spent because it’s important for you to do all your monthly accounting tasks in one single hour.
So many deadlines to keep track of, not to mention your clients’ deadlines. Remember, losing track of those big dates will mean IRS penalties and fines, which only adds to overall costs.
Reliable Information Source
The tax code in America is not meant to favor individuals, but instead businesses, which create jobs. 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 note that this code isn’t permanent; in fact, it’s different year after year. But there’s no doubt about one thing – taxes are not what you’re in business for.
Personal expenses alone are already difficult to keep a tab on. If you throw a business into the mix, it can be chaotic. Unless you’re working with an accountant who helps you monitor your finances, and draw a line between your personal and your business expenses. The IRS can be particularly hard on those who combine the two. You could end up triggering an audit, and the burden of proving that the questionable expenses are business-related will be on you.
Business Expansion Support
It is the goal of all business owners to grow their business. But the problem is when your love for your business is too much that you begin to make irrational, emotionally charged decisions. It’s no secret what risks that brings, and that is why working with an accountant who has no emotional investment in your business, is most probably a good move.
More than Balancing Books
Finally, when you hire an accountant, you don’t only have someone who will manage your books. It means that you will be getting other kinds of professional help in other areas too, such as business incorporation, financial reports, business deductions, and the rest. Of course, not all accountants are created equal, and it’s crucial to do your homework before actually hiring someone.