Advantages Offered by an Accountant to a Start-up
Hiring an accountant for your start-up business can offer a lot of benefits. The most obvious, of course, is having an expert deal with the mountains of paperwork, not to mention the red tape and all. Yes, a good accounting will be able to do more for you than simply balancing your books.
Below are the most crucial advantages that an accountant can offer your start-up business:
You’re a business owner, not an accountant, so your time is your cash. Hiring an accountant buys you time to focus more on your business. Try comparing your hourly rate to the cost of this professional.
So many deadlines to keep track of, not to mention your clients’ deadlines. Remember, if you end up missing any of those dates, you will be fined and penalized by the IRS, which will be even more costly for you.
Reliable Information Source
The tax code in America is not meant to favor individuals, but instead businesses, which create jobs. Besides that, the tax code is complicated by nature, and even if you do own a business, you will still not get all the tax benefits possible, unless you understand the code like a professional does. And take note that the code is always evolving – what you understand now may be different next year. But one thing is for sure – you did not start a business to master taxes.
Personal expenses alone are already hard to track. If you throw a business into the mix, it can be chaotic. Unless, of course, if you have an accountant who helps you monitor your cash flow and separate your personal and business finances. The IRS tends to be very strict with those who combine them. You could end up triggering an audit, and the burden of proving that the questionable expenses are business-related will be on you.
Business Growth Support
All business owners want their business to grow. But the problem is when you love you business too much that your emotions get in the way of making rational and profitable 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 means that you will be getting other kinds of professional help in other areas too, such as business incorporation, financial reports, business deductions, and the rest. But of course, because accountants are not created the same, you need a bit of research to know who’s best for you.