Small firms play a significant role in the economy. The small and medium enterprises employ almost half of all citizens in the United States.
Unfortunately, close to 52 percent of all startups collapse within their five years in business. But why? Cash flow problems and regulatory burdens.
See, most business owners strive to reduce the initial costs. In doing so, they rarely employ experts for the job. And the results, chaos, and failure at last.
These are some fundamental reasons why you need a small business accountant.
- Start on the Right Foot
If you want your business to thrive and become successful, put up systems that support its growth. If you don’t, you’ll waste valuable hours and days trying to put off fires. Hiring a competent accountant when starting is one way to do this.
Your accountant will help set the financial books and records in order from the start. They’ll also advise on the best software to employ in your company. You don’t want to waste time backtracking and cleaning up disorderly financial books.
- Tracks Your Financial Numbers
Another solid reason to work with a competent accountant relates to your financial statements. Having an expert look at your financial books is invaluable.
An experienced accountant will help you set attainable goals and work towards attaining them. If you don’t measure your performance, you can’t manage it.
Today, accounting software’s can generate various financial reports at a single click. It allows you to sieve through the stories and get actionable data. However, understanding the data is another thing especially where you don’t have the requisite financial knowledge.
As a business owner, you’re extremely busy. As such, you’ll need to create some time during the weekends to go through what most accountants do. Consider the advantage of having an expert monitoring your financial data and advising on the next course of action.
- Making Deadlines
Well, it seems the regulatory burden on business owners is increasing daily. Most regulatory bodies have a schedule of regulation and regulations that all businesses should comply with.
Depending on your business and the industry you operate in, there are multiple deadlines that you’ve to follow. Failure to meet these deadlines will attract huge penalties.
Having an accountant means these deadlines won’t sneak on you. A competent accountant will also advise you on the best resources to implement your most tedious tasks.
- Making Clear and Informed Decisions
A business owner tends to juggle between different roles at a go. At times, there’ll be a flow of decisions to be made in marketing, human resource and other departments in your industry.
One thing is clear, the quality of the decisions you make is dependent on the available information. Having an accountant who knows the financial status and health of your business means you’ll get the information whenever you need it.
For instance, will hire an extra employee to add value to your business? Make these decisions based on the data and knowledge at your disposal.