Do I Really Need an Accountant for My Small Business and Tax Matters?

The majority of small business owners in the United States do not realize that up to 80 percent of businesses fail within the first 18 months. One of the most prevalent reasons for a business’s failure is financial mismanagement.

Despite such major potential consequences, a recent study determined that more than half of small business owners do not even hire an accountant. Unfortunately, one third of the respondents used paper and pen alone to keep track of their finances. Accountants provide far more than tax filing, and having an accountant in your corner can help you whether you’re just starting a small business or you’ve been operating one for more than a decade. Read on to learn more about some of the most important reasons for hiring a small business accountant.

Getting Your Deductions

The majority of business owners do not receive all of the deductions to which they are entitled, which makes sense because planning for deductions can be stressful and time-consuming. By hiring an accountant, you will have someone who can minimize your time spent on this process and advise you on ways to maximize your deductions.

Avoiding Audits

Unfortunately, many people decide to engage an accountant once it’s too late and they’ve already been audited. Having a trustworthy accountant who can give you guidance over the course of the year can decrease your risk of being audited by the IRS. Think of your accountant as part of your long-term strategy for complying with tax regulations.

Make Decisions in Real Time

Many business owners would benefit from thinking about the implications of their decisions before making them. By taking a collaborative approach toward your overall business goals with your accountant, you can more easily capture the most relevant and recent data to apply to your business decisions.

Future Planning

One of the most critical benefits of hiring a small business accountant is that you gain counsel on how to plan ahead for your own future. As a business owner, you are most likely preoccupied with the day-to-day operations and challenges of your business; having an accountant can give you the opportunity to take a step back from the details to focus on directing the business.

Source:

Zero to Sixty Report