When you’re running a small business, it’s essential to reduce costs wherever you can. Some expenses, however, can lead to larger profits in the future. Although many small business owners assume they can handle their taxes alone, this can lead to unnecessary financial losses. To find out why it’s so important to get expert advice, take a look at these four reasons why every small business needs an accountant:
1. Get Your Taxes Right
There are strict requirements when it comes to filing business taxes, and missing a deadline or submitting the wrong form can result in costly penalties. Of course, when you outsource your needs to an established accounting firm, like Brown Smith Wallace LLP you won’t have to worry about how or when to submit your tax returns. Instead, you’ll have peace of mind that your taxes will be submitted in accordance with the relevant regulations.
2. Reduce Your Tax Liability
All businesses have to pay some form of tax, but an experienced accountant can help you to reduce your tax liability. This means you’ll retain more of the revenue your business generates, which can be used to reinvest in the business or shared between shareholders. While you can’t avoid paying tax, you can work with the system to ensure your business is as tax efficient as possible.
3. Save Time
Although you might be able to keep a record of your income and expenditure and even submit your business taxes, this will take up a significant amount of your time. If you don’t have professional accounting experience, it’s also going to take far longer than it really should. As a result, you’ll spend less time running your business and focusing on core areas because your time will be taken up with accounting and administrative tasks. By outsourcing to an accountant, you can redirect your efforts to your own area of expertise and spend more time growing your business.
4. Claim Grants and Rebates
Businesses can pay less tax by claiming the exemptions and rebates they’re entitled to. Similarly, there are grants and loans available that can actually give your business access to more funds. However, the rules and regulations regarding these can be complex. In response to the COVID-19 pandemic, for example, the U.S. Government introduced four different types of loans or grants for small businesses. With help from an accountant, you can determine whether you’re eligible to apply for loans, claim grants or benefit from tax exemptions and rebates.
Should You Hire an Accountant?
As you can see, there are many reasons why small businesses should seek advice from a professional accountant. However, this doesn’t necessarily mean that you need to hire an in-house accountant to manage your books. Outsourcing can be a great way for small businesses to access thead hoc services and advice they need, while keeping costs low. By working with a reputable accountancy firm, for example, you can access a wide range of services at any time while minimizing your costs and protecting your finances.