Do we require a business accountant for our startup business and is it wise to hire one? Let’s find out the needs to be benefits of a business accountant.
When one thinks of starting a business, the first thing which comes to mind is finance. The lesser the Finance involved happier is the business person. But the most important factor is managing the business and accounts in such a manner that, the outcome of the amount invested should be profiteering.
In the current era, the number of freelancers and startup owners have considerably increased and hence has increased the requirement of business accountants. But, these new entrants in the business world believe that they themselves could handle the accounts and the Paperwork of the business themselves and look upon the business accountants as a very expensive affair.
But on the contrary, not hiring the business accountant for a startup business could in itself become the most expensive affair for such business personnel.
A good accountant is not just helpful in filing forms but, they prove to be the best advisors for carrying the business in the direction of profitability and thus providing the required platform for growth to the business. They create a business environment in which the unnecessary tax and the revenue tax deductions get prevented.
Benefits of Having an Accountant and The Roles Performed by a Small Business Accountant:
The risk is an obvious thing in running a business while specific risks such as introducing the new service or giving a chance to the non-tested employee give an unexpected advantage. Although it is very tough to imagine a scene where taking a risk via accounting practices will prove advantageous in the future aspects.
There is an opinion that if you are on some venture then save you risk for your books of accounts. Hiring a small business accountant can pay dividends for making the bigger business in various ways.
Now Discussing the Advantages of Hiring a Business Accountant:
Small Business Accountant free up the Time
If you seek to spend your workday with bookkeeping and tax planning then you will yourself become a small business accountant. But you cannot focus and give your time and energy to the various specialties. In this way, you can spend your time effectively.
Here are the top benefits of why choosing an accountant is good for your business.
Secures Time :
you do not have to furnish all the tasks yourself. The accountant can assist you in dealing with the firm’s most important responsibilities like furnishing the taxes and make sure that you do not miss the last dates. As the accountant is so fond of the new tax rules and laws this might save your time in going through the state’s tax requirements and tax liabilities.
Reduces the tax liability :
the accountants remember the process to save the taxes and claim for the tax deductions via having a look at the fiscal capacity and financial transactions. They can calculate the taxes and advice on the most tax-effective methods of running the business.
Cautions Towards the tax Penalties:
various business owners who do not pay attention to the taxes have experienced penalization and face tax suits for tax theft. An accountant in your office handles the business expenses and losses. Through these, you can build up the decisions upon the grounds of the computed risks and pre-determined results.
Removes the Tax Tension:
the accountant assists in explaining to you the information about the difficulties of the tax system so as to remove the tension that you are from the non-tax grounds. When your mind knows that someone takes care of your taxes then it gives you relaxation.
Assist in Bookkeeping:
it is important for small businesses that they will maintain the records of buy and sale of their products. The accountant can assist you in keeping the same for your businesses. Without bookkeeping, it is tough for you to predict the future gains and losses that will take your company towards higher risks.
Keep Managing your Businesses:
if you are handling the bigger businesses with the various employee and distinct departments then the accountant can help you in managing your rentals and utility bills. Indeed the accountants are good in the payroll system, budget-making and could be the best individual who can provide you advice towards managing the loans and investments.
Assist in the Expansion of the Business:
an accountant can assist you in having the access to the other industries with respect to your business. This will provide you more chances of meeting the new people who might become your partner and assist you with other objectives of the business.
Read Also: Why You Need A Chartered Accountant While Setting Up A Business
The Other Areas where the Accountant can Prove Effective to you:
The role of the accountant is not just limited to balance the books but they provide a wide variety of services which could be vital for the startup business to succeed. The accountant does not only balance the books and records but they provide you various services to get your business a success.
Below are some of the instances.
Business Incorporation
An LLC and an S-Corp, a C-Corp. What is the meaning of that which is best suited for you?
Your accountant will discuss your purpose of the business, finances, and things to recommend that will be effective for you. Some of the accountants will make sure that you have filled the forms effectively and are furnishing on your own. The incorrect form filing might lead you to unnecessary obstacles in taking benefit of the tax advantages of incorporating.
Quarterly Taxes
According to the rules you need to furnish the taxes on quarterly grounds. To compute your federal quarterly approximate tax payment your adjusted gross income, taxable income, taxes, deductions, and credits for the calendar year.
Do you feel the confidence furnishes these? If not then you need an accountant.
Giving Salaries
When your business will become much more successful than you will need to furnish yourself. You can take your salary on the grounds of the business structure.
Furnishing these will need withholdings for the social security, medicare, federal income taxes, and the state income taxes if urged by your locale. It builds the other layer of complication of the taxes where your accountant could assist you to operate.
Business Deductions
Do you have the home office then you take a deduction for?
Did you know that for the home office deduction to get legal it should come beneath the IRS’s definition of “exclusive and regular use?” thus if you utilize your home office as a guest room then you cannot take the full home office deduction. All these objectives raise the value of an accountant. It is the job of the accountant to see all these matters.
Financial Reports
Your accountant provides you with the reports via year so you can see your own fiscal progress and manage as per the needs. Waiting for the year-end survey suggests that you will not be conscious of the objectives such as when would the outstanding invoices.
Read Also: Make A Successful Professional Identity Online With CA Portal
Acknowledgment on Hiring the Accountant
When We are Hiring An Accountant for the First Time:
As you can see that hiring an accountant is an effective business choice. However, what is the method for seeking a qualified individual?
Personal suggestion is the most desirable place to start. If you work under any professional company then ask your colleagues if they could refer you to a good accountant. They would be known with the accounting requirement of fellow freelancers and small-scale business owners.
When you have some leads then it is time to do more research
Check their experience
You will not trust your health to the non-qualified doctor thus you do not trust your business to the non-qualified accountant. You must be assured that your accountant is qualified via the affiliated accounting bodies like the Association of Chartered Certified Accountants (ACCA), the Institute of Chartered Accountants (ICAEW or ICAS), or the Chartered Institute of Management Accountants (CIMA).
Develop the Relation
Do not hire an accountant online do call him and ask him to visit and meet you for your work. You need to develop a relationship with your accountant so that they can remember the particular needs of the business. You must know about the accountant you choose as your relation with him will go longer. Your trust in him must be stronger as you need to share the important financial relevant things with him which is quite personal for you.
Find a Proactive Accountant
An effective accountant will only protect you and your business not only in your tax things amended fastly when you are the owner of the business hence partnering through the proactive accountant is the method to make sure that you are seeking the benefits for all the possible tax savings.
Insist on a Fixed Fee
As you have just started your business, make sure for a fixed fee arrangement such that you don’t receive a big itemized bill at the end of the month. Along with this, get the roles and responsibilities of the accountant confirmed and properly understand the services available under this arrangement, before he has started giving his services.
Build a Relationship
Nowadays, freelancers and small business owners conduct business online. Also, there are many such accounting firms which provide accounting services online but this is not the best approach. You should be working closely with the accountant whom you hired and you also wish that the business accountant should properly understand the requirement of your business. Thus, you should be hiring someone, you would be comfortable working with and a sense of trust could develop between the two.
At any stage of a business, whether you are on the verge of entering the business world, or are newly incorporated, or have been running your business for some time, an accountant is always a good investment. The success of one’s business largely depends on its business accountant.
