Advantages Offered by an Accountant to a 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.
Here are the most important benefits an accountant can provide your start-up business:
You’re a business owner, not an accountant, so your time is your cash. An accountant buys you time to concentrate more on your business. Compare your per-hour rate to the cost of this accounting expert. If you charge $100 on an hourly basis and an accountant charges $100 on a monthly basis, that should be $100 well spent, considering there’s no way in the world you can do his monthly worth of accounting tasks in one hour.
There will be lots of deadlines to meet, not to mention lots of deadlines of your clients. Remember, losing track of those big dates will mean IRS penalties and fines, which only adds to overall costs.
Valuable 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. 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. Adding your business into the mix can only make it messier. Unless, of course, if you have an accountant who helps you monitor your cash flow and separate your personal and business finances. The IRS can be particularly hard on those who combine the two. There’s a chance you’d trigger an audit, and the burden of proof in terms of establishing that the questionable expenses are indeed business-related, is all on you.
Business Growth Support
It is the goal of all business owners to grow their business. The problem is when you have too much love for your business that you start making irrational emotional 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 also means having professional help with many other things, like business incorporation, business deductions, paying salaries, and so on. Of course, not all accountants are created equal, and it’s crucial to do your homework before actually hiring someone.