Sometimes, you need to call in the pros.
- There are certain small business tasks it pays to get help with.
- Mishandling your small business accounting could have major consequences.
Some small business owners like to do it all. They like to take charge of everything from inventory to marketing to hiring new people to bring on staff.
There’s nothing wrong with wanting to be a hands-on small business owner. And the more work you do yourself, the less you’ll have to spend on hired help.
But there are certain small business tasks it pays to outsource. And accounting is one of them. Here’s why it pays to hire a professional accountant rather than tackle that work yourself.
1. You’re too busy to do it yourself
Small business accounting work isn’t a quick thing. You have to constantly review your books, reconcile different accounts, and make sure you’re up to date on all matters tax-related. That’s a big ask. And if you’re pressed for time, which is likely the case given you’re the one running the show, then it pays to take that burden off of your plate.
2. You’re not knowledgeable enough to do it yourself
You may have a basic understanding of small business bookkeeping. For example, it’s not all that difficult to look at your small business checking account and see how much money has been flowing in versus flowing out. But tax matters are a whole different story. There are a lot of rules and nuances to be aware of, and you may not have the knowledge to do your accounting accurately.
To be clear, this isn’t a failing or shortcoming on your part. Accountants spend many hours each year reading up on new rules so they’re up to date on key changes. But it’s also easy to see why a professional accountant might possess certain skills and information that you don’t.
3. You want to maximize your tax breaks
Small businesses are often entitled to certain tax breaks. Hiring an accountant could make it easier to make the most of those and make sure you aren’t leaving any money on the table.
4. You want to make sure you’re claiming the right deductions
If you own a small business, you’re probably aware that there are certain costs you can write off on your tax return. These include supplies, transportation used for work purposes, and other costs related to doing business. But you don’t want to go overboard on claiming deductions or list the wrong ones on your taxes. If you do, it could lead to an audit — and a big headache.
That’s why it pays to hire an accountant. That person can walk you through your options and make sure you’re doing the right thing.
It’s also important to note that different states have different rules and requirements for small businesses. Hiring an accountant could help ensure you’re doing what you’re supposed to be doing.
Small business accounting can be complicated work. So why not leave it to someone who really knows what they’re doing? That way, you can spend your days focusing on big picture items — and making sure your business is growing and thriving.
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