Should I Hire An Accountant? Top Reasons Why Small Businesses And Individuals Need Accountants
When one thinks of accountants, it is not uncommon to immediately make an association of people in the profession with big corporations. After all, the complex financial statements have to be audited by accounting firms and one tends to think that’s their core role.
However, hiring the services of accountants can be quite fruitful for individuals and small businesses as well. Still wondering whether hiring an accountant will be a good idea?
These pointers may help you see more:
- Doing your taxes
Anyone who has gotten near to taxes and tax filing will know that it is not a piece of cake. There are lots of records to be maintained, tax laws to be understood, various ways of filing income tax to abide by and so much more. Accountants will help make life easy for you because they are in the business and are keeping a tab on all and any changes in tax laws. They will advise you of any changes in your tax status, help you with an audit, and also guide you on legal means of reducing your tax liability.
- Advise on your Financial Situation
Your accountant will likely know your financial situation in detail. While they may not give investment advice like a personal financial advisor, they will keep an eye on your credit rating and advice you on how to improve it. They will also warn you if you have been undertaking a lot of debt recently or how you stand financially in terms of making a further investment and whether you can even afford to do so.
For Small Businesses
- Taxation Purposes
Just like individuals, small businesses also have to file taxes, and the process can be even more complicated than that of individuals. Accountants will keep a tab on changes and developments in tax laws, deductibles from your business, important receipts and expenditures incurred, tax breaks and tax credits, etc.
- Accounts Maintenance
As a small business, you will have assets and will make profits or losses. While the financial statements for a small entrepreneur may not be as complicated and detailed as that of a large corporation, there is a need to maintain ledgers and keep a tab on monetary resources. Without an accountant, the management of these basic accounts can be quite arduous for an entrepreneur
- Greater Efficiency
Accountants know of the latest software and technical developments in the accounting world. This is no more the paper world and these professionals can help improve the efficiency of your business through the use of software that can help generate statements and maintain records much more quickly and efficiently.
- Financial Advice
Because these guys know the ins and outs of your finances, they are very instrumental in giving honest, sound advice on any major financial decision taken by a small business. Be it capacity expansion or investment decisions, an accountant will tell you whether your business has the monetary strength and capacity to undertake any major financial decision.
For these reasons, penny-pinching on the services of an accountant is a definite no-no for small businesses and individuals alike. Be smart and know the worth of these professionals, and be sure to hire a certified accountant too.