Hiring an accountant tends to be viewed as a luxury rather than a necessity from the perspective of new business owners. Saving money is generally a priority for entrepreneurs, and when it comes to cutting costs, in-house accounting is a viable option.
While deciding against hiring a professional accountant such as one from Gorilla Accounting saves money, people tend to be unaware of the many advantages that an accountant can provide to a start-up business. Below is a list of the benefits that come with hiring an accountant.
Perhaps the biggest advantage of hiring an accountant is the amount of time that it saves you. Accountants handle the time-consuming tasks that keep you from realizing your true business goals, as cited by Forbes. With the number-crunching and other tedious chores taken care of by your accountant, you are now free to focus on growth-oriented tasks such as planning marketing campaigns, sales territory mapping and finding new business leads.
Also, accountants aid entrepreneurs in the ever-present struggle of achieving a healthy work/life balance. Time you would otherwise spend trying to handle your business’s accounting duties can now be devoted to your family and taking a break from the office.
While hiring an accountant is an initial cost, it will serve as an investment down the road. This stems from the fact that an accountant will help you to improve your business’s efficiency. This includes cutting costs and maximizing operations to generate greater profits. It is for this reason that hiring an accountant presents itself as an opportunity for growth rather than a financial step backward.
Aside from keeping your startup’s financial logistics in check, accountants can provide valuable insight about its business operations. Accountants work with clients in a wide variety of industries and markets, giving them a breadth of knowledge in terms of what practices are working and which aren’t for other businesses.
Getting advice from someone removed from your organization is very helpful, as you are likely immersed in the day-to-day operations of the business. This outsider’s perspective can help you to see the big picture and recognize opportunities that would otherwise go unnoticed.
Formulating a Plan
Looking into your business’s performance and creating a plan for the future is another invaluable service accountants provide. Data that might not mean much to the untrained eye suggest future opportunities and threats to an informed accountant. Having this type of educated feedback helps to ensure that your business is headed in the right direction and won’t fail before it gets a chance to take off.
Avoiding Tax Issues
If you don’t have a background in tax, managing your business’s taxes can be a difficult process. While it may seem arbitrary to point out that accountants handle a business’s taxes, the true value of this service isn’t always realized. Tax regulations change regularly, something that is nearly impossible for bogged-down business owners to keep track of. Hire an accountant in order to ensure that your business operates within the confines of current tax regulations.
Feedback from entrepreneurs who have taken a chance and hired an accountant suggests that it is a worthwhile investment. Sage recently conducted an accountant-usage study revealing that 89 percent of the participants cited working with an accountant as a key to their success.
Considering that accountants work with many businesses and command respect in professional circles, they can serve as important contacts for growing a business. Whether you are looking for new customers, potential partners or other business leads, accountants can offer you valuable referrals, as discussed by WAHM.
Hiring an accountant is an advantageous decision for someone trying to grow a startup business. Consider the aforementioned benefits in deciding whether or not an accountant is worth the investment for your business.