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The wealth of influence money has over one’s emotions is uncanny. It brings you joy as it drifts into your business bank account, sadness when it leaves and fear when you know time is upon you to file your taxes.
It’s an uncomfortable situation for most owners, particularly ones who do it alone and wing it any way they know how in any attempt to hoping nothing terrible will happen to their business financially.
The solution to this problem of fearing your business finances is clear and distinct. It’s a solution that can help you sleep better at night and relieve anxiety over your business financial fears. This can be achieved by appointing a professional, an accountant. Use Google and recommendations to find superior CPA firms, and be selective about finding the accountant that’s right for you and your company. If you’re not entirely convinced that an accountant is what your business yearns for, here are just a few reasons why you should begin your search.
With a startup business failure rate around 90% within the first few years of opening, there are a few reasons that contribute to this, one of them being poor financial management. Who knew that not keep track of the lifeblood of your business correctly could resort in paving your company’s destiny towards failure? Hiring an accountant will eliminate the possibility of financial management ruining your businesses success.
There is a common theme amongst business owners who are approaching the end of the tax year and subsequently panicking searching for receipts of business purchases to increase their overall deductions and reduce the prospect of their business’s earnings being ravaged by the tax people. If your organization is behind with looking after it’s expenses, or you have little to no idea the impact deductions will have on your profit, contacting a professional accountant is a wise choice.
Forecast And Growth
Swimming from month to month spending all that your business earns without little consideration is bound to amount to a cocktail of over-spending which eventually leads to borrowing more money, that could spiral into debt.
Also, you will want your business to expand, and to a degree, this will require money. But if you don’t have a forecast for your finances for the coming months to a year ahead, you’ll have little to no inclination of where your business is heading and what money you have left to invest it back in the company to encourage its growth. An accountant can devise a financial forecast for you to prevent this issue occurring.
Startup business owners take the standpoint of believing it’s smart to do as many business tasks as possible themselves to save money. That’s a great idea if you’re great at most things, but it’s also incredibly time-consuming and takes your attention away from the parts of the business that need your time to flourish.
Weighing up the cost of hiring an accountant to keep your business finances in line is worthwhile for the reasons above. But also because you probably spend a reasonable amount at the moment on a monthly or bi-monthly basis on a cleaner, mechanic, plumber and so on to look after other areas of your life you don’t have the time/expertise/energy to do by yourself, accounting for your business should be no different.