If you own a small business you might be wondering if you should hire someone to do your accounting or if you should try and do it yourself. In many cases you will find that it is better to hire someone and the benefit of having your finances done correctly is worth every penny you will pay the accountant. Here are some things that the accountant will do for your business.
1. Organize Your Business Expenses
When you organize your business, it is vital that you understand what expenses can come from the business and what should be handled personally. For instance, you can and should pay your medical insurance from the company. That way the business can get a tax break and the costs can come out of your paycheck each month rather than out of your family budget. Some other things that you can pay for out of the business are business expenses, and other taxable expenses. This can save you a great deal of money to run them through the business.
However, it should be noted that there are certain expenses that shouldn't be paid out of the business. Some need to be your personal account and if the IRS were to audit you and see that you had mingled your business and personal accounts incorrectly, you could be in trouble. For this reason, it is best to hire an account to help with these decisions.
2. Bookkeeping and Payment
Another time-consuming part of running a business is cutting checks and keeping the books. You have money coming in and out of the business each month, and the way you record it is very important. You need to decide early on if you will be doing the accrual or cash method so that you don't record transactions twice and have inaccurate books. An accountant will know exactly what to do to get your books accurate so that you don't have to worry about recording incorrectly.
In addition, the accountant can help to issue bills, receive payment, make payments, and much more. If you don't hire an accountant, you will be handling all of this yourself. These are hours spent at work that you are not getting paid. It can be a massive burden if you are just learning, and you could make mistakes.
These reasons, and many more, are why every small business owner should hire an accountant. For more information about small business accounting, talk to an accountant like Don Lamb CPA Inc P.S.
Share20 September 2016
I have always dreamed of opening my own beauty salon, but never seemed to have the money to make that dream come true. I decided that it was time for me to hire an accountant to help me create a savings plan and to assist me in calculating how much money I would need to open my salon. I found out all about what it takes to start a business and a lot of great advice about what I can do to save the money I need to make it happen. If owning your own business is something you are dreaming of, my blog can help.