Accountants: What It Means For Your Business
So what does that mean for you and your business? How can an accountant’s way with numbers and super-human calculating skills make your life easier? Here are just a few examples of how using an accountant can help your business grow:
Business taxes can be confusing. Get the help you need.
An accountant can advise on business structure. Is your small business set up as a sole proprietorship or an LLC? What’s the difference and what are the benefits of one over the other? An accountant can point your ship in the right direction and even handle the paperwork to get you there.
An accountant can issue invoices. Your business has to make money somehow, so you need to be sure you’re charging—and collecting from—your customers in a timely and professional way. An accountant can create and send bills to your customers so you can get paid.
An accountant can record sales. For your business to succeed, you need to know what you’re actually selling, how much you’re selling and at what profit. An accountant can keep track of your small business’s sales and run reports. That way you know what your biggest sellers are, which products to phase out, and how much inventory you need for next month. An accountant also answers a tons of other questions that will help your business grow.
An accountant can manage and pay invoices from suppliers. The bigger your business becomes, the more stuff you’ll need to make it run. Your accountant will pay your suppliers (and keep track of those expenses) so you know how profitable your business really is.
An accountant can manage payroll. How many hours did your assistant work in June and how much was she paid? Your accountant can track and calculate her pay, plus tell you how much you need to withhold for quarterly payroll taxes. An accountant can track accounts receivable. You know invoices have been sent to all of your clients, but have any of them been paid? Your accountant can track who has paid (and who hasn’t) so you know how much cash you have on hand—and if you need to send out late notices.
An accountant can keep you up to date with tax laws and changes. Taxes are tricky and with the 2018 Tax Bill, they may get even trickier for small businesses. An accountant can help keep you in compliance with tax laws by calculating payroll taxes for your employees or keeping up with sales tax changes for each of your products.
Create weekly, monthly and/or annual reports on the financial well-being of your business. How healthy is your business? How much cash should you keep on hand? An accountant will create all the reports you need to make the right financial decisions for your business.