Tuesday, January 30, 2018

3 Compelling Reasons Why Your Small Business Needs a Freelance Accountant

Running a small business can leave you on the fence about acquiring professional services like those of an accountant: You might not be big enough to have an in-house finance department, but the DIY route isn’t appealing, either.

There comes a point for every small business where you should ask yourself: “Could the time I spend doing my own books be better spent doing something else?” If accounting isn’t your strength, it doesn’t just take time to do the work. There’s also a potential opportunity cost: It’s taking your focus away from the things you do best, like being a great leader and growing your business.

Accountants don’t need to be in-house—in fact, you don’t even need to meet them face-to-face. So you aren’t limited to the accountants in your neighborhood. There is a real chance that the person with the most relevant knowledge and experience for your business might even be across the country!

Need convincing? Here are three compelling reasons to hire an accountant for your business.

It’s a shame to miss out on a tax break

Are you aware of all the government regulations that govern your business when it comes to filing your taxes? Are you getting the most from your tax write-offs? And are you sure that the expenses you are reporting are eligible?

As your business grows—and regulations change—keeping track of the answers to these questions can get increasingly difficult. A small business tax accountant can ensure you stay on track and out of trouble with Uncle Sam all while helping you get the tax breaks you’re entitled to.

Make payments on time and correctly

Keeping the people you depend on happy is a cornerstone of success. And that means paying any employees, contractors, or vendors you work with on time. Accounts payable and payroll may seem straightforward on the surface, but the more your business grows the more complicated it can be.

Further to this, it’s important to have a full understanding of worker classification and who needs to receive a W2 or 1099 form. Misclassification can get you in a boatload of trouble—something a payroll specialist (or even an attorney or HR specialist) can help you avoid. According to Columbia Law School, penalties for misclassification can range from $5,000-$25,000 per violation. And this doesn’t include the associated legal costs or the amounts that might be due to the IRS. If you need more convincing, check out this personal account.

Prepare for growth and secure financing

You’re in business to make money and should have systems in place to help you make the most money in the most efficient way possible. If you don’t have those operating procedures in place yet, an accountant can look at your company cash flow and make suggestions for improvements, set you up with the best accounting and inventory management software for your needs, and consult on the best pricing strategies for your product or service. They can also provide financial forecasts to help you make better-informed decisions for future purchasing and growth.

Big steps toward growth—such as large investments to help scale resources or production—can also involve applications and pitches for financing. A freelance accountant who specializes in growth can help you prepare your business plan, lead you to avenues for potential funding, and improve your odds of getting approved.

Ready to engage a freelance accountant? Get step-by-step tips to help you find the right accountant for your business needs.

The post 3 Compelling Reasons Why Your Small Business Needs a Freelance Accountant appeared first on Upwork Blog.



from Upwork Blog http://ift.tt/2BD7xvB

No comments:

Post a Comment