Running a small business of your own, especially in the early stages, may mean dealing with very small profit margins and very little room for budget flexibility. So you may be managing your books and handling your financial reports on your own to avoid wasting money. And in fact, you may be spending a large amount of time on this task, time you would otherwise spend on your product and your customers.
Here’s something to consider: hiring a small business accountant may be less expensive than you think, and this affordable expense might bring big returns down the road. Here’s how.
An accountant can help you choose a business structure.
As you first launch your business, you may be structured, by default, as a sole proprietorship. But does this structure make the most sense for you over the long term? Certain tax advantages and asset protection may be available to you if you structure yourself as an LLC, an LLP, or partnership. Talk to a professional accountant to fully understand the benefits and requirements of each option. You may be missing out on financial advantages that could add up over time.
An accountant frees your time.
If you’re like most small business owners, you didn’t pursue this path because you loved toiling over financial statements; you got into it because you love the product or service you provide and you want to spend your time focusing on ways to deliver that service to your satisfied customers. No matter what you do, your business benefits when you spend more attention on the details that leverage your unique passions and skillsets. Let your accountant take a few critically important—but time-consuming and tedious—tasks off your shoulders.
It’s hard to put a price on expert help.
No successful business can take root and grow without a few problems and challenges along the way. And some of these challenges and questions are bigger than others. For example, how should you respond when tax laws change? What if you make a serious mistake or need to walk back a wrong decision? What kinds of borrowing and financing options are available to you if and when you’d like to expand or procure new assets? When you have a trustworthy accountant at your side, you don’t need to unravel these knots by yourself.
Mistakes are more expensive than prevention.
Some of the errors you might make as a non-professional accountant can have expensive consequences. So expensive in some cases that they may far outstrip the cost of an accountant you hire on a full-time or part-time basis. Keep this from happening by making the right move at the start.
For more on how to find and hire an accountant who can help you keep your business on track, talk to the team at Extension.