What Accountants Can Do To Help Small Business Owners

Several small business owners spend a lot of time in managing their books and creating financial reports. Because as we all know processing small business funds all by yourself can be time-consuming and frustrating. However, one of the best ways to avoid this kind of frustration is to hire an accountant from a well-known accounting firm.

On the other hand, a good and intelligent accountant can help every small business owner to free up their time and used it to other important business matters. They also play a very important role in small businesses. However, some small business owners say that they can't afford to hire an accountant because they don't enough funds and they are not aware what accountants can do to their business.

Nonetheless, let us see how an accountant can help small business owners to grow their business.

13 Things That Every Accountant Do To Help Small Business Owners

Here is the list of the things an accountant can do for your small business. You need to carefully review this list, especially if you're still hesitant why a certified public accountant or CPA may be a good human resource to add to your small business team.

1. Help You to Raise Business Funds - Accountants are not around just to manage your finances, because they can direct you in the correct direction for extra funds without putting your small business at danger like applying for a loan, distributing share capital, or growing an overdraft. Accountants can also help you to find an angel investment and trade shares in your corporate.

2. Provide your Needs - To all small business owners, you need to consider the needs of business first before employing an accountant. Don't choose an accounting firm that focuses on accountancy of multi-nationals but rather choose a firm that will cater your needs. A skilled accountant can advise small business owner on issues regarding invoicing, good stock control, as well as sufficient working capital.

3. Accountants will determine the top business structure (example: partnership, corporation, sole proprietorship, or LLC) that will fit in your business.

4. As your small business grows, you're more likely to hire more staffs to support your business expansion. On the other hand, running a big company is somewhat difficult so as a result, you can't manage your employee's payroll system on time. But an accountant can take this duty off your hands and they will make sure that all of your staffs are getting paid off with the exact amount at the right time.

5. They will explain to you the importance of separating business and personal expenses.

6. Explain financial statements so that you will be able to comprehend the ins and outs of your business.

7. Collect and submit your financial reports, taxes, and other important papers to the Internal Revenue Service or IRS.

8. Make sure that your accounting procedures meet the government requirements and regulations.

9. Gives advice on how to trace your expenses used every business activities.

10. Eliminate Unprofitable Services or Products - An accountant can perform an analysis of your failing service or product lines inside your business to identify which products or services may possibly affect your small business from growing.

11. Accountants can improve performance assessments that will surely get you back on track - As a business owner, you may possibly think that everything is running smoothly and doing well if your sales manager always gives you a good report that your business is rapidly growing. But when it comes to numbers, only accountants can tell you the truth.

12. Make financial forecasts to help make the right decision for your business.

13. Accountants can add value to your business in several ways

For instance, a business partner or financial advisor can institute new best practices for money management, lessen collection costs, increase revenues, and perform the financial aspects of your business that you don't understand.

However, if you're still new to the business, perhaps you can afford to hire a financial advisor at first but an accountant can be a great substitute. Accountants can complete the financial blanks from periodical tax filings to budget forecasts for the coming quarter. And since business is all about cash, an accountant can look at the business development from a monetary perspective and they know how to avoid expenses just to improve ROI.

Conclusion

These are only some of the things that every accountant can do to help every small business owner.  However, it's up to you if you'll going to hire an accountant to do all of your financial activity or you can limit his/her participation to reduce business expenses. Nonetheless, A bookkeeper can be very effective in your companies accounting to improve your small business in terms of being organized and compliant ready.

But the most important thing that you can do for your business finances is to identify if you really need a help of professional. If they are worth it to help you maintain the financial state of your business.