Here’s Why You Should Consult With an Accountant Annually
If you are starting out in business, it’s important to know from the start the roles that you will need to get help with in order to run your business successfully. One of these roles is that of an accountant because the finances of a business are always very sensitive. Read on to see why you need to consult with an accountant at least once a year and you may realize the importance of doing so.
They Help You Make Sure That You Are Compliant
While running a business, there are many things that you may miss, some of which may leave you non-compliant. This could lead to issues for you down the road, potentially costing you a lot of time and money to deal with. If you consult with an accountant on a yearly basis, they may help you make sure that every financial aspect of your business is in compliance with the law. They will identify the forms you need to fill out as well as documents you have to update in order to make sure that you cannot be charged with illegal operations at any level. With more than 46,000 public accounting firms in the United States at the moment, it’s not going to take too much work to find a good one whom you can trust to help you keep your business legal and compliant.
They Explain Your Financial Statements
An accountant will explain your financial statements to you, making sure that you understand all the details. This can make it easier for you to manage your business as you will be aware of the goings-on with your money. As such, it will be more efficient for you to plan your finances and know the best ways in which to run your business. If you are making losses or profits, your accountant is the person to help you know the details of these.
They Oversee Your Payment Processes
An accountant is the best person to help you organize your payrolls and other payment processes. They most likely know the most efficient way to do these tasks so they can make the process extremely easy for you. Simply let them know what you need to do and give them a list of the people on your payroll and they will work out a fast way to make the payments. This will save you from disrupting other business duties that you may have. For instance, studies done by researchers at the University of California at Irvine on accounting and IT workers found that the employees changed their focus from one project to another an average of once every 10.5 minutes. They were also interrupted during over half of their 10.5-minute project segments. This is a disruptive environment to work and it could be improved by entrusting a specific task to a specialist so that other people, including yourself, can focus on their duties.
They Advise You on Tax Payments
An accountant will also help you with tax payments and explain the details to you so that you pay your taxes in time and comply with the law. When you keep up with things like your taxes, you may have an easier time paying off any debt that you may have. Your credit score is 30% outstanding debt, so it’s clearly easy to improve your credit if you keep your debt in check. The accountant will also help you with budgeting and make it easier for you to run business affairs.
These reasons should motivate you to consult with your accountant at least on an annual basis. When you get into this habit, you will find that it’s easier to run your business and you could even map a way to succeed.