3 Reasons You Should Hire An Accountant For Your Small Business

If you are a small business owner, it’s likely you are balancing a lot of jobs.

For example, think about your last workday. How did you spend your time?

Did you spend the majority of your workday making money, or did you spend a large portion of your day on admin, accounting, or marketing tasks that stopped you from growing your business?

Everything in life has an opportunity cost. That includes the time you spend on accounting.

Let’s say you do your own accounting. You are technically already paying for it – with your time. If you charge $150 per hour for your services and your accounting takes 5 hours that day. You are pretty much paying $750 to yourself to do your accounting.

Why not outsource accounting to someone else and pay less money for it than you are paying yourself?

Here are 3 reasons you should hire an accountant for your small business:
 

1. You Want to Free up Your Own Time

When you dreamed about being an entrepreneur, you probably visualized scenes of choosing your own work hours, working on things you truly care about, and most importantly, looking forward to going to work.

You probably didn’t think about being huddled in a dimly lit corner of your office during the wee hours of the morning trying to figure out your accounting.

The good news is you don’t have to keep doing this.

Efficient entrepreneurs know that they need to delegate their work to other people. If you delegate accounting to professionals, it saves you time to do what you do best, closing deals and making money.

2. You Need Help with Legal Advice

To corporate or not to corporate? Your small business can have a variety of different legal structures with a variety of different, confusing definitions. Luckily, you aren’t alone. You can get help with your legal structure by hiring an accountant.

So how do these structures influence your business? Well, the different structures affect the amount of paperwork your business is required to do, the personal liability you face and your ability to raise money. They also impact how efficiently you can minimize and take advantage of tax deferral techniques.

If you choose a structure that is wrong for your business, you could be causing yourself a lot of pain down the line. For example, if you choose do to business as a sole proprietor, if your business fails to pay a supplier, defaults on a debt or loses a lawsuit, the creditor could legally come after your possessions or house.

3. You Need a Business Plan

Many small businesses fail because they don’t have a business plan. If you are just starting a small business and need to write a business plan, or currently are in business and don’t have a business plan, an accountant can help you with the financial aspects of the plan.

Your position in your business adventure is similar to finding your direction in life. If you are using a map, and you don’t know where you are, or where you want to go, it’s difficult for you to know your next steps.

Don’t fall for the typical pitfalls that most small business owners make and write a detailed business plan with the help of an accountant.

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If you’ve been thinking of getting an accountant, let us know how we can help you. Contact us today for a free consultation.