Benefits of Hiring an Accountant for Any Start-up
If you have a start-up business, bringing in an accountant can provide so many benefits. The most obvious is perhaps having someone to deal with tons of paperwork and basically cutting through the whole red tape that new businesses usually have to face. Yes, a good accounting will be able to do more for you than simply balancing your books.
Here are the most important benefits an accountant can provide your start-up business:
As a business owner and not an accountant, your time is your money. Hiring an accountant buys you time to focus more on your business. Compare your per-hour rate to the cost of this accounting expert. If you charge $100 on an hourly basis and an accountant charges $100 on a monthly basis, that should be $100 well spent, considering there’s no way in the world you can do his monthly worth of accounting tasks in one hour.
So many deadlines to keep track of, not to mention your clients’ deadlines. Remember, losing track of those big dates will mean IRS penalties and fines, which only adds to overall costs.
Reliable Information Source
The American tax code is not designed for individuals but rather for businesses, which are job creators. Aside from that, the tax code is by itself complex, and even with a business, you still won’t be able to benefit from it much if you don’t truly understand the code. And note that this code isn’t permanent; in fact, it’s different year after year. But there’s no doubt about one thing – taxes are not what you’re in business for.
Personal expenses alone are already hard to track. Adding your business into the mix can only make it messier. Unless you have an accountant who is seeing to it that your cash flow is well-monitored, and that your personal expenses are kept separate from the finances of your business. The IRS tends to be very strict with those who combine them. You may just trigger an audit, which is a headache you’ll never want in your wildest dreams.
Business Expansion Support
All business owners want their business to grow. The problem is when you have too much love for your business that you start making irrational emotional decisions. It’s no secret what risks that brings, and that is why working with an accountant who has no emotional investment in your business, is most probably a good move.
Lastly, working with an accountant doesn’t just mean having someone to balance your books. It also means having professional help with many other things, like business incorporation, business deductions, paying salaries, and so on. But of course, because accountants are not created the same, you need a bit of research to know who’s best for you.