If you have a small business, chances are you’re managing your books on your own or with the help of your friends and family, from Excel spreadsheets to a “homegrown” accounting system. But, you can do better. (If you’re in it for the long haul, you’ll want to invest in a quality accounting solution that will grow and adapt with your business.
Your accountant plays a key role in helping you achieve your personal and professional goals. As your accountant, they can provide you with valuable insight and guidance throughout the year. Here’s a list of 10 reasons why working with an accountant can benefit you:
1. They can save you money
Understanding the tax code can be difficult. You can find yourself overwhelmed by all the forms and paperwork that requires your attention. An accountant can help you navigate this confusing process. They’ll take care of all the paperwork, so you don’t have to. They help you plan for the future. Whether you’re trying to save for retirement or have a child in college, having a financial plan in place is vital.
2. They can help you avoid penalties
So, you’ve been making errors on your tax return and you are really worried about the tax office finding out. You are not alone. ATO estimates that in any given year, one out of every 100 taxpayers actually gets audited, and that about half of those audits result in some sort of penalty. there are a number of tax errors that can be avoided, and accountants are trained to look for these errors and help you avoid penalties.
3. How Accountants can help you avoid bankruptcy
It’s easy to lose sight of the big picture when you’re in the middle of dealing with taxes, paying employees, and juggling creditors. It’s important to remember that if you or your business begins to run into financial trouble, you may be able to save yourself from bankruptcy by seeking the assistance of an accountant. An accountant can help you recognize and resolve financial issues early, before they snowball into serious problems.
4. Accountants can help you buy a business
Buying a business requires a number of considerations and an understanding of the process from start to finish. Luckily, experienced accountants can help finance a business purchase, manage your books, handle your payroll and more, making buying a business a little easier and infinitely more profitable. This is true whether you are buying a business or selling a business; an expert accountant can make the process easier.
5. Accountants can help you sell a business
If you want to sell your business, you should consult an accountant. Accountants can help you find buyers. They know all of the ins and outs of the taxes and accounting issues that comes with selling a business. They can also guide you through the legal and financial steps involved. You may think you can handle getting your business ready for sale on your own, but an accountant can help you set a fair price, and they can help you understand how selling a business will affect your personal income tax.
6. Accountants can help you maintain your business
As your business grows, there will be more and more information that you will need to track and record. As your business expands, you will have a greater need to have your financial records organized and easily accessible. At Carol Chin Accounting Services, we have the accounting skills you need to maintain your business. We will help you develop a system that works for you so you can feel confident that you have a good understanding of how your business is performing.
7. Accountants can help you avoid fraud
It’s no secret that there is a lot of fraud going on in the world. There are many different kinds of fraud, from tax fraud to employee fraud to consumer fraud.
In just about any business, financial transactions take place on a regular basis. From the largest international corporation to the smallest startup, every business must have some system for handling their finances.
It’s easy for a business owner to become so focused on their day-to-day operations that they neglect the details of bookkeeping and record keeping. The business owner may not even realize that they could be facing serious problems until it’s too late. Service like a Professional Accountant can help you avoid many of these pitfalls.
8. Accountants can help you protect your estate
An estate plan is a set of documents that enables you to distribute your assets to your heirs and beneficiaries upon your death or incapacity. One of the most common mistakes that people make is to not have one in place. If you are a business owner, then your assets may be passed to beneficiaries who are not your immediate family members. Business owners are also responsible for the livelihood of employees, and they need to make sure those employees are taken care of if something happens to the business owner. Accountants can help you get your business and personal estate plans in place. They can also help with tax planning of your estate plan so that the taxes are minimized.
9. Accountants can help you with managing cash flow
Since the dawn of time, people have been tracking their finances. From chiselling numbers into stone tablets to the rise of online budgeting tools, accountants have helped to keep us on track with our financial goals. And with the rise of small businesses, independent contractors and freelancers, it’s important that you have someone in your corner who can help you manage your cash flow, manage your taxes, and give you peace of mind as you build your business.
10. Accountants can help you with auditing process
For any business, auditing and tax processes are very important and can be a large time commitment. Given the amount of time and energy that must go into these tasks, many small business owners hire an accountant to help with these processes. An accountant can help you with auditing process, the first step in taxes. The two main types of business audits are: financial statement audits and operational audits.
There are also external audits eg tax audits, internet security audits, insurance claims audits, pre-purchase feasibility audits that your accountant can assist.