How an Accountant Can Help Your Start-up
Hiring an accountant for your start-up business can offer a lot of benefits. The most obvious is probably having someone to cut through the entire red tape that new businesses normally have to deal with, not to mention the piles of paperwork. 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. 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, 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.
High-Value 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 note that the code is always changing year after year. But one thing is for sure – you did not start a business to master taxes.
Personal expenses alone are already difficult to keep a tab on. Adding your business into the mix can only make it messier. Unless you have an accountant who is seeing to it that your cash flow is well-monitored, and that your personal expenses are kept separate from the finances of your business. The IRS tends to be very strict with those who combine them. You may just trigger an audit, which is a headache you’ll never want in your wildest dreams.
Business Growth Support
No business owner doesn’t want growth for his 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.
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. Of course, not all accountants are created equal, and it’s crucial to do your homework before actually hiring someone.