When you start your own business, it's natural to want to save costs where you can. Few home businesses are without a bit of overhead, prompting owners to do the bulk of the work themselves. When it comes to decide how to spend your money wisely, using some of it to hire an accountant is almost always a good idea. Here are five reasons why:
1. Setting Up Your Books
If you're new to business, you may save every scrap of receipt that you're given. Alternatively, you may throw away the things that you need. An accountant can help you set up your books and teach you how to keep up with them. If you don't have the money to hire an accountant full time, at least hire one to help you with this important step. Once you understand what to keep track of and what to throw away, you can begin to keep the books on your own.
2. Legal Compliance
Do you know which taxes you need to pay and which don't apply to you? If not, you aren't alone. While many entrepreneurs understand how to file personal taxes, few understand the finer points of business tax law. An accountant can make sure that you're following the letter of the law as set by federal, state and local governments. A professional accountant is also able to keep up with changes to laws and how those changes apply to you and your business.
A professional accountant can help small business owners with general planning, ensuring that you are keeping as much of your profits as possible. An accountant can be sure that you are taking the appropriate deductions, paying the right amount for your taxes and, ultimately, help you make your money work for you. With the right planning, your business can be self-sustaining in a shorter period of time, freeing up your personal finances.
4. Inventory Management
You may not put two-and-two together when it comes to an accountant and your inventory, but you're missing out on a great benefit. An accountant can help you make important purchasing decisions, basing the choice of equipment on cost versus return. While you may think that you need a $1500 computer to help your business grow, an accountant may be able to point out how a $500 computer, coupled with the right software, is a better option. Your accountant can also help you set prices for your products and services that will enable you to compete with same businesses while maximizing your profit.
5. Networking Assistance
If you hire an accountant, make it a local one. This professional has many contacts within the local business community that can come in handy for your business. The professional that you choose can put you in touch with business leaders, government officials and even potential customers. When you hire a local accountant, you open doors that may otherwise have remained closed to you.
If you are deciding what type of help you'd be smart to invest in, an accountant should be your first choice. Using an accountant to simply get you up and running can often make the difference between success and failure. By helping you establish a bookkeeping system, helping to control your inventory, and facilitating meetings with people in your local community, an accountant can be an invaluable asset to your new business.
Writer Jimmie Hutton is a full-time writer for McKinley Plowman and Associates. To find out more about hiring an accountant, check out http://www.mckinleyplowman.com.au/category/our_services/3.