According to Statista, there are about 1.3 million accountants in the US. This figure is significant, and therefore hiring an accountant should not be a daunting task.
Are you wondering whether to hire an accountant or not? Are you tied between options and making this important decision has become a nightmare? Sometimes, you might be required between making choices that matter in your business.
If you are a startup, business owner, or entrepreneur, you might want to exercise control over your business. Therefore, the idea of hiring an accountant might be not your thing. Accountants are naturally expensive, and hiring one might cost you a fortune.
This article takes you through the benefits of hiring an accountant. Read on!
1. Bookkeeping purposes
You might be the business owner but probably don’t know about bookkeeping. This is the primary reason why you have to hire an accountant.
Bookkeeping involves everything that surrounds the business financial environment. Business accounts, ledgers, the cashbooks, daily transactions, and expenses all fall under bookkeeping. It is the work of qualified accountants to handle the books of accounts.
Although it might look like an easy task, managing accounts is challenging. At the initial stages, it might be simple, but as you advance, it gets complicated. Paying suppliers, employee remunerations, and managing every day’s expenses is only possible with a qualified accountant.
2. Managing business assets
The accountant can be of great help to the growth of your business. Since you can’t control all the assets on your own, the accountant will be of great help. Besides bookkeeping, accountants are trained to handle all sorts of management tasks.
When away from the workplace, the accountant can act as the manager on your behalf. He or she can oversee the operations in the business and other employees. The accountant can also compile business reports on behalf of the owner for management purposes.
Since accountants are the businesses’ primary auditors, they can also oversight the proper use of the business property.
3. Business plan support
Are you a startup business or company trying to come up with a business plan? The starting point of your business is making the business plan. Never underestimate this essential business document in your business.
To come up with an accurate business plan, you have to involve a financial expert. Recording the financial section of the business is very important. If you are looking for external financing, an accountant is very crucial.
Writing down the financial plan and structure of a company is not about playing with numbers. It is a delicate affair that requires extra care and attention. The accountant will help put down all financial details that potential investors or creditors want to see.
4. Handling the taxation process
How can you approach Uncle Sam without proper tax know-how? Do you know how to file taxes or pay any back taxes? If you are not a taxation expert, you might need one to help you in the process.
Taxation is a part of accountancy, and whoever you hire to manage your taxes should have the right knowledge. There is no need of blundering around the process while there are many accountants ready to help you. Don’t wait to get fined by not adhering to taxation guidelines.
The accountant can take you through all processes of filing all the forms as required by the taxman. If you operate a sophisticated business entity, then the taxman will help you out.
Besides, the accountant can save you from the tax menace in case there are unpaid dues. He or she can offer professional advice or negotiate deals with the IRS.
Accountants know the ins and out of the taxation systems and can save you from penalties and fines. Since taxation is a continuous process, the accountant can manage things effectively.
5. Valuation of business p
If you want to do a business valuation, you have to involve professional help. An accountant can help you in determining the proper value of your business.
Valuation is essential during liquidation or sale or business. You have to factor in all aspects of the business without leaving out vital details. Instead of hiring expensive auditors, your accountant can help in the process.
Also, before settling for a trust or when declaring bankruptcy, the value of a business is essential. If you want to calculate the worth of the business, accountancy is crucial. It’s a means of preventing you from flopping or getting flawed figures.
6. Making critical business decisions
Making a business decision without informed financial decisions is a waste of time. You need to make moves that might change the course of your business. In many occasion, you have to make some decisions that matter a lot.
As a business owner are adept to the most critical activities in the business. Without proper decision making, you can make the wrong choices thus hurting your business.
Having an accountant with proper knowledge of your business undertakings is a good idea. You are assured of access to quality information whenever in need of it. Hiring annual accounting & financial statements services will eventually save money that could be lost through bad decisions.
7. Handling complex business software
Sometimes, you might be using sophisticated management software in your business. From the starting point of implementation, you need someone who can handle such systems. Your accountant will learn how the systems work and assist during implementation.
Accountants have advanced financial and technical skills vital in the business. They know how to apply the latest technologies in the market. If you are acquiring software for preparation of reports or statements, the accountant will be the first person to consider.
The accountant helps you reap the advantages of new financial technology.
8. Saving time
How long does it take you to go through every financial detail of your company? How many hours and days do you take while preparing reports for your business? Without accountancy knowledge, you waste your precious time doing what you don’t know.
In this case, you need an accountant who can do things faster and assist in the complex processes. Also, they can simplify tasks for other departments within your business. After hiring the accountant, you can delegate some of the time-consuming tasks.
Tasks that are imperative to business stability and success requires significant time. That is why you need someone who can help handle such tasks.
9. Streamlining business growth
For any business to grow, all departments should be functioning in a well-coordinated manner. The accounting department works together with others to ensure business growth.
If you want to grow your business, hiring an accountant is essential. The accountant helps in running the business, thus enhancing growth. It is hard to grow your venture without help from other people.
An accountant is a fundamental player in any business or company. From making critical business decisions to handling daily transactions, the accountant is beneficial.
10. Minimising business costs
Business owners endure high business costs due to lack of financial management skills. This leads to the collapse of many businesses because of the high costs. Although hiring an accountant is costly, it minimizes the business costs in the organization.
Accountants with proper financial expertise will detect the financial drains in the business. Some costly financial drains hinder the growth of the business, and that’s why you need an accountant. While you may be tied up by other aspects of the business, the accountant will act on your behalf.
Factors to consider before hiring an accountant
Hiring an accountant is essential, but hiring the right one is more important. Before hiring an accountant, there are some key considerations to make. Here are the things to check;
1. Qualification and expertise
Is the person you are interviewing qualified to work for your business? Look for experts in the field, not just anyone. A competent professional will offer a lot to the progress of your business.
Check academic and portfolio if any. The best accountants excelled in academics and accounting courses. Accountants with CMA and CPA qualifications are exceptional.
Are you in a position to pay the accountant you are about to hire? Does your business have the financial muscles to sustain the accountant? Always consider what is available in the business before making a move.
If you don’t can’t sustain an account, it’s better to consider part-time contracts. A permanent contract is ideal for well-established businesses rather than startups.
3. Level of service
How many accounting tasks can the accountant handle in the business? You need to hire an accountant who can handle all accounting tasks. The accountant should be qualified in taxation, audit, and booking.
When hiring, consider a whole package and an accountant who can handle all your tasks. This saves your business money as you don’t need to hire someone else for your business.
The bottom l
As evident in this article, an accountant is helpful for many reasons. Your business will likely benefit from hiring an accountant. When hiring, conduct interviews, and tests to get the most appropriate accountant for your business.
If you have any thoughts, be sure to share them in the comments.