You know one of the reasons why small businesses take so long to grow? It is because the business owner is everything! You are the founder, the janitor, the manager, the errands boy et cetera. While you can’t afford to hire more people at this time, there is an expert you shouldn’t avoid— an accountant.
Hold up, whenever you mention an accountant to a small business owner, his mind will automatically see a tax accountant. Obviously, you need an accountant to help you with tax paperwork, but you there is so much more you need an accountant for. We interviewed Mary Jo Watson of Balancing Act to get more insight into how a small business accountant can help a small business prosper and grow.
Frees your time
You are not a trained accountant and therefore book keeping is a nightmare that takes more of your time and slows productivity. Spending hours trying to work on your ledger, balance sheets, and petty cashbooks can really eat into the time you need for strategy and production.
Here, delegation is key, do what you are good at and leave your finance records for someone who can handle them for you. Having your accountant set up accounting software properly can save a lot of time and money and give you a better idea of how your business if performing and will flag problems more quickly. An accountant will use receipts and input them into accounting software where they will be available for future auditing. Trying to juggle all the aspects of your business commitments has lots of shortcomings too.
Keeping Track of Expenses
Most entrepreneurs are visionary but do not have the ability to organize and trace their personal and business expenses. Shop owners, restaurant owners, service business owners know their business but having an accountant, who has seen the problems and solutions in many businesses can provide advice that can make you a lot more money. Normally, a good accountant will save or make you more money than you spend on the accountant.
Also, with an accountant you will know which business expenses keep you sinking and how to cut the costs— every business wants to reduce expenses and increase profits, most accounting firms offer consultancy services to help you leverage on what the market has to offer so that you don’t just do business—you thrive. An example at Balancing Act, they offer small business consulting which is really helpful in succeeding in your niche and forecasting income streams and cost controls.
If you have ever tried it you will concur with me that it is not easy to prepare payrolls for employees. Think about their allowances, deductions, taxes, insurance et cetera. A lot goes into clearing salaries for employees that it can take you days just working on the payroll
Also, chances are high that you will not do it right and you will have employees queueing outside your office frothing with anger because their expectations isn’t what you had issued.
Having an accountant helps you get this right the first time. In case of complaints, he or she will shoulder all of it as you have a peace of mind focusing on more important aspects of your business.
Every business needs an accountant irrespective of the size. Most small business owners who have overlooked the need for an accountant have lost it big. You don’t have to tread the same path. You shouldn’t shy away from having a personal accountant as there are so many accounting firms who specialize in small businesses hence their rates are reasonable.