Entrepreneurs who seek out the right types of support tend to outperform their competitors.
Of all the ways a small-business owner can lighten the load, relying on a professional accountant consistently proves to be one of the most productive.
Some entrepreneurs feel they need to satisfy all their financial needs themselves if they are to remain informed and in control.
In reality, having an accountant handle certain duties should always empower and enlighten a business owner.
There are six things your accountant can almost certainly do better than you, a look at each of which follows.
1. Tax Preparation
No one enjoys paying taxes, and filing them is not much more pleasant. Software tax preparation systems make things easier, but they have many drawbacks.
Experienced accountants like those at Brown Smith Wallace can make short work of tax preparation while maintaining high levels of accuracy.
That makes needing to pay penalties and interest later on less likely, which can easily make a real difference.
Having an accountant handle tax preparation will also open up other opportunities that can be valuable.
Accountants who take care of tax preparation for clients’ businesses tend to develop helpful insights along the way.
2. Tax Planning
Handing off tax preparation duties to a skilled accountant often proves to be a great way to start building an even more useful relationship. Having an accountant provide tax planning advice will typically make for a natural next step that can produce even more progress.
Actively planning a business’s decisions and arrangements to account for tax-related issues can reduce the annual tab significantly.
When an investment can just as well be put off for a couple of months, for instance, a bit of strategic delay might cut a tax bill significantly.
Once a business begins to grow, effective auditing processes and activities will always become useful. Unfortunately, it takes a lot of knowledge and skill to implement auditing measures that will actually stand up in practice.
It will almost always be best to have accountants design auditing systems and also oversee them later on.
Your accountant will have studied the subject-specific and will likely have practical experience with it, as well.
Many businesses need to keep up with regulatory requirements if they are to avoid fines or even remain licensed.
Accountants are often best-equipped to make sure a company will stay on the right side of the law and any relevant rules.
Even business owners who feel they are skilled at complaisance will rarely have time to keep up with the latest developments.
Task your accountant with handling compliance-related matters and you will never need to worry about falling behind.
Being able to quickly take the measure of a business can be invaluable. Accountants who are able to produce enlightening financial reports help business owners stay on top of the state of their operations.
While software packages generally help out, there is no substitute for the expertise of a discerning, skilled accountant when it comes to reporting.
Even just having an accountant produce annual reports covering business will often prove worthwhile.
6. Financial Analysis
Many successful entrepreneurs have an instinctive feeling for business, but that does not necessarily translate to in-depth, specific knowledge.
Accountants who can analyze factors like cash flow and borrowing opportunities put business owners on firmer, more reliable financial ground.
Many More Ways by Which an Accountant Can Help
These are six of the things that your accountant can almost certainly do better than you.
There are many more ways a knowledgeable, skilled accountant can help the average business owner succeed.