We hear all the time of the most recent small business that had to shut its doors for good. And it might be hard not to worry that your small business could be next.
But why do small businesses sometimes seemed doomed to fail from the get-go? In fact, the #1 reason that small businesses go under is due to problems with their finances. And many times, some, if not all of these problems could have been avoided if they’d had a professional on their team who understood and could correctly analyze their business’s financial situation.
Your chances of surviving as a small business will increase significantly if you have the right accounting expert on your team, and here are 5 reasons why:
1. You have more important things to do.
You are the CEO of your small business. That means that you wear multiple hats and switch between them multiple times a day. Your primary responsibility is to set the mission and direction for your team and be a leader they can confidently follow. You’re an expert in your field, so there is no one more qualified than you to be the head of your business.
With all the important responsibilities on your plate, it’s doubtful that you have extra time to manage all the details of your business’s finances. That’s where an accounting expert comes in – they take care of the books so that you can focus on running your business.
2. You’re leveling up your professionalism.
As we said before, you’re an expert in your field, and you get paid for your expertise. But, it’s probably safe to say that it’s unlikely that you’re an expert in accounting too.
Hiring an accountant levels up the professionalism of your small business because, simply stated, your accountant is a professional. He or she knows by study and experience how to best take care of your books – how to implement the most efficient accounting processes, how to analyze and troubleshoot your finances, and how to effectively utilize the best accounting software for your business.
3. You want accurate books – the first time.
We all know that your books need to be correct in order to accurately file for taxes, but did you also know that it’s essential for the health of your small business to have accurate books throughout the rest of the year too?
Accurate books give you a good gauge on the health of your business, give you insights into how you can earn and save more money, and also help you avoid unnecessary fees.
A professional accountant can keep your books accurate – without mistakes – so that you always have a clear picture of your business’s finances and can make the best decisions possible.
4. You want to save yourself a headache at tax time.
Ah, tax season: Every small business owner’s favorite time of year ;) We know that tax time can be the most stressful and agonizing time of year for your business. Reviewing and probably fixing your books to make sure that everything is in good shape is time-consuming and stressful when you have to do it by yourself.
Accounting expert to the rescue! Hiring a professional accountant will ensure that your books are accurate the whole year so that tax season is a breeze – no adjusting, no cramming – just peace of mind knowing that your business is in good hands.
Your accountant understands the most recent tax laws and exemptions so that you don’t have to. He or she knows how to maximize your credits and minimize your liability so that you can come out on top. In addition, having accurate books significantly decreases your chances of getting audited by the IRS. And even if you should be selected for an audit, your accountant will be right there with you every step of the way.
5. You’re applying for Covid relief grants and loans.
There are multiple opportunities for your small business to receive grants and loans from both federal and state governments for Covid relief. But, did you know that in order to qualify for these funds, your books have to be in order? You’ll need to be able to prove how your business was negatively impacted by the pandemic, and accurate books are essential to be able to do this.
An accounting expert in 2021 should be up-to-date and knowledgeable about all the funding opportunities for your business and understand all the qualifications you must meet in order to get all the support you need to survive the pandemic.
What to do next:
Now that you’re empowered with the knowledge you need to succeed, it’s time to take action! For most small businesses, outsourcing your accounting needs to a professional is the best option.
Our team at JR Bookkeeping are experts in small business accounting, and we are confident that we can give you the help you need to grow your business. And better yet, if you sign up today, you’ll receive 1 month of services for free! Now we think that’s a deal that’s too good to miss out on ;)