As the new entrepreneur of a budding business, you may have entered your field because of a novel idea or great service you want to share with the world. You may even have confidence in your management abilities, as well as the organizational and people skills to successfully take your business to new heights.
However, very few entrepreneurs are proficient in accounting and bookkeeping, nor do they have the time to take on all the financial duties running a business requires. According to Wasp Barcode, only 40% of owners claim to be very or extremely knowledgeable when it comes to their general understanding of accounting and finance, and 82% of businesses fail due to cash flow problems. Despite these numbers, many small businesses don’t hire an accountant or bookkeeper.
While limited funds may have you convinced that you can do without professional accounting services, hiring someone to help you take on the financial organization of your new business and prepare taxes correctly can set you up for success in the long run.
Avoid Common Accounting Errors
When business owners have too many irons in the fire, accounting errors are bound to happen at some point. Issues with data entry can have serious consequences, such as:
Hiring a professional accountant who is aware of the best accounting practices, has a deep understanding of accounting programs, and has a well-established system in place to quickly detect errors can take the responsibility off your shoulders. This will allow you to focus your attention on other areas of the business.
Get the Most Out of Your Tax Return
If you want to spend less time trying to sort through your taxes and ensure you come out with the best refund possible, hire a small business tax accountant to prepare your taxes for you. These professionals can take care of every step of the process, ensuring you are benefiting from every deduction available to you, filing your taxes, and offering advice on how to better your tax strategy for the future. According to AllTopStartups, because accountants know the ins and outs of taxation, they will be able to save you from any penalties and fines.
Enlist Help With Payroll
If you have a full-time accountant taking care of the general finances for your business and filing tax returns, he or she may take care of payroll for your company as well. To make managing payroll easier, consider investing in an online payroll service to help streamline the process and improve your employees’ experience.
When searching for the right payroll software, look for a service that includes automated payroll, calculating your employee’s wages while factoring in any other circumstances, such as overtime, insurance deductions, benefits and bonuses. Employees will also appreciate having an online portal to access using their computer or phone to easily see and download pay stubs, tax forms, or other reports. This also saves you the hassle of having to track down and provide information to your employees any time they need to reference their pay.
Streamlined payroll is incredibly important because it helps your employees feel appreciated. Paying your employees on time will encourage them to keep working hard, and this will benefit your business in the long-run. Your employees are the lifeblood of your company, so you should ensure they are satisfied.
If you’re not as adept at handling finances for your business as you are at managing your employees and strategizing ways for your brand to grow, a professional accountant is an invaluable addition to your team. Ensure your business is on the right track financially and free up more of your time to take care of other critical areas of operations.
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Article courtesy of Kelli Brewer.
Amy Lauria, the president of Spotlight Business Solutions, has been working as a digital marketing maven since 2005.