JoshAs a small business owner, you have to cut costs everywhere you can in order to protect your bottom line. Until you get more sales and grow your business, you don’t have a huge operating budget and you may try to do as much of the work yourself as you can.
When it comes to your finances, this can be a huge mistake. Sure, there are accounting programs and finance software that promises to make the work a little easier, but nothing can replace the experience that a certified accountant offers. Here are a few ways that an accountant can help your business:
Handle Factoring
Factoring accounts receivables is one of the biggest financial tasks of running a business. Creating invoices, collecting payment and following up with clients who don’t pay takes up a huge amount of time and resources.
With the help of easy to use services like Invoice home, an accountant can handle this work for you and can help you improve your on-time collection rates. An accountant can also help you understand your options for getting the cash you need when you have outstanding invoices, such as using a factoring service.
Improve Deductions
Taxes take a huge chunk of your business finances, whether it’s payroll tax or corporate income tax. But the tax code is so big and complex that it offers numerous opportunities to reduce your tax liability.
An experienced, certified tax accountant nyc (or one elsewhere more relevant) will help you understand all your options for reducing your tax liability and can help you find more deductions and tax credits. There are deductions you may not know you can claim and credits you may not know you can qualify for.
After having an accountant file your taxes, you may come out thousands of dollars ahead. Just think about how you could expand your business with that kind of money.
Limit Fines and Penalties
Doing your own taxes can not only tax you in the savings you miss, but it can also result in steep fines and penalties if you make any errors. Accounting software won’t always catch those errors, so you shouldn’t feel like you are “safe” by using it to check your work.
An experienced accountant will eliminate fines and penalties from filing errors and can help you avoid late fees, as well. Of course, you are in charge of when you ultimately pay your taxes, but your accountant will try to keep you on track and make sure you get everything in on time. If you can’t, your accountant may be able to negotiate a payment plan on your behalf to minimize the interest that you pay.
Save Money on Payroll Costs
Time is money. Whether you are trying to manage the finances yourself or you have someone on staff working on it, you are paying more than you need to in payroll costs. An accountant can do the job in much less time, saving you a lot of money.
Whether you have an accountant on retainer or hire one to file your annual taxes, you’ll come out ahead by saving time and money on the tasks.
Offer Feedback on Other Cost-Saving Measures
Your accountant can help you with much more than your taxes. Your accountant can review all your financial transactions to help you find other ways to cut the fat.
For example, your accountant might help you figure out how to get a better interest rate on a loan or a line of credit. Or your accountant might recommend software or services that can help you manage operations while also saving time and money.
Overall, your accountant will help you understand where you are spending and getting your money so that you can make better financial decisions for your business.
If you really want to get the most return your investment, hire an accountant for your small business. You’ll save money and ensure that your operations are running as efficiently as possible, securing your success and longevity.