5 Ways an Accountant Can Help Your Small Business
November 17, 2022
Accounting, Bookkeeping, CPA
Having your own business is a great way to follow your passions and see a return on all that work you put in. But when it comes to numbers, many small business owners feel like they’re stuck in second gear.A certified public accountant (CPA) can help you get back on track with all things accounting related. An accountant can assist with financial reporting, tax preparation, and audit services. They aren’t just useful for big businesses. Small businesses also stand to benefit from hiring an accountant. Here are six ways an accountant can help your small business grow and thrive.
Stay on top of your financial responsibilities.Accountants are highly trained professionals who can help you stay on top of your financial reporting and payment obligations. Whether it’s sales tax, payroll taxes, or filing your quarterly financial reports, your accountant can assist with all of these. Every state has its own set of rules for businesses to follow, and even a simple oversight could lead to fines and penalties. Having someone on your team to help keep you current and compliant can save you a big headache in the long run.
Help you understand your company’s financial position.
An accountant can help you understand your company’s financial position. This includes everything from your current assets and liabilities to your ongoing cash flow. The better you understand your current financial position, the better you can plan for the future. Hiring an accountant can help you identify the best path forward. From cash flow forecasts to long-term debt obligations, your accountant can help you understand all aspects of your financial position. This can also help you see where you may need to make some changes to improve your financial standing.
Help you spot red flags in your company’s financial reporting.
As you work with your accountant to create your financial statements, you can work together to identify any potential red flags in your financial reporting. This can include missing information or errors in your company’s financial reports. This can help you spot issues early and correct them before they turn into major problems. A quick audit of your financial reports from your accountant can help you catch issues before they cause major problems for your business.
Assist with tax planning and preparation.
Your accountant can also assist you with tax planning and preparation. This includes assisting you with choosing the best accounting method for your company and identifying any write-offs that you qualify for. But it also includes helping you plan for taxes in the future. Your accountant can help you forecast your company’s taxes and identify tax savings and breaks that you qualify for. Tax planning is a year-round process that can help you reduce your tax liabilities and improve your cash flow.
Provide auditing services to make sure everything is in order.
Depending on your company’s size and needs, your accountant may also be able to provide auditing services. An audit is a thorough review of your company’s financial statements to make sure everything is in order. This can include a review of your bookkeeping records, financial statements, and financial controls. An audit can help you identify issues early and correct them before they become major problems. This can also help you correct issues that were not caught during your financial reporting process. An audit may be required for certain government contracts, industry types, or for your company’s growth. Your accountant can help you determine if you need an audit and can assist with the process.
While it may not seem like an accountant can do much for a small business, the reality is that these professionals can actually help you save money and prevent problems from arising in the first place. If you’re not sure if hiring an accountant is right for you, ask yourself these questions first. Do you feel like you’re always behind on your financial obligations? Do you have no idea how to forecast your company’s financial position? If you answered yes to either of these questions, then it might be time to hire an accountant.
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Accounting, cpa, Online CPA, Small Business