Most small business owners are choosing to forgo a small business accountant and do all the paperwork them selves. I’m one of those small and I guess you can say; a cheap small business owners who finds better ways to make use of my business earning rather than spending it on a small business accountant. And as my business enters it’s third year of existence, I’m beginning to to think that I should stop being cheap by considering to pay a small business accountant to handle my business transactions. I’ve finally realized that if I’m to give my small business the best chance for success, then I need to consider paying for the advice and assistance of an accountant.
The fees of small business accountants are not as much as you’d think, and there are certainly very good reasons to let a small business accountant handle your small business transactions and taxation, some of which I’m about illustrate bellow:
General Bookkeeping Duties - All accountants are trained to maintain a business’ financial records and to generate standard financial documents or reports. They can also assist in creating monthly or quarterly reports about the income your business generates, expenses and other overhead costs. Accountant can also prepare payroll, for the small business owners who have employees.
Tax Planning – Good accountants offer general tax planning advice to maximize business tax deductions.This a process that’s done throughout the year leading up towards tax seasons. This way, the small business owner is ready ahead of time, because they’ll know which way they’re heading.
A small business accountant is particularly important to small based business owners to identify what can be claimed and what cannot. This area virtually pays for it self alone.
Government Compliance – Government compliance on small business owners is changing constantly and at times it can get fairly complicated for a small business owner to understand. Many accountants, especially if the Certified General Accountants (CGA), are familiar with corporate and tax law, and they keep up to date with any pertinent changes to the legislation. This can help the small business owner in several ways including: determining the appropriate business structure for a venture and assisting with its setup, taxation registration and lodgement, and filing corporate tax returns with all the necessary deductions.
Acting Consultant – A really good small business accountant acts as a partner to your small business by providing suggestions and advice on cash flow management, inventory management, price control, employee benefits, different employee structures and other improvements for your small business.
Local Connections – Most small business accountants are well connected to lawyers, bankers and other financing options. A small business accountant can make the right recommendation for you to obtain necessary business financing to take your small business to the next level.
Investing in an accountant can significantly give a boost to your small business and the advice you receive will quickly outweigh the cost in accounting fees. Choosing the right accounting services can sometimes be a daunting task, so entrepreneurs are encouraged to take the necessary time to find the right accountant for their small business. I’ve been fortunate enough to be able to use my personal accountant for my business accounting services as well. However, if I had to look for an accountant, I’d definitely look for the following:
- Small Firm or Private Individual vs. Large Accounting Firm
- Fits My Small Business Budget
- Someone who allows me to do my own bookkeeping, therefore reducing the fee of the accountant
- Easily Accessible
- Someone who’ll keep in touch and stay in tune with my business
Before making any decisions on who’ll become the accountant for your small business, don’t be afraid to interview a few possible candidates. Good Luck!
If you’re a small business owner, do you use a small business accountant or go at it alone?