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Why Your Small Business Needs an Accountant

Small Business Accountant

Many people who start their own small business do so as a means of determining their own destiny. They are their own boss, operating the business their own way and planning for the future with their own ideas. There are, however, certain laws and regulations legislating aspects of any business. For this reason, and more, it is a good idea for any small business to have an accountant.

Small Business Accountants Can Handle Payroll

Small business owners often wear many hats: boss, lease negotiator, inventory specialist, decision-maker, payroll, shipping and receiving, IT, HR and occasionally even custodian. In the midst of all of that they also manage employees, even if those employees are contracted. State and national law dictate what forms those employees need to fill out, how much of their paycheck is deducted for taxes, benefits  and Social Security. Business owners are forced to either learn the tax laws (and the changes to said laws each year) or hire an accountant to help. Just managing payroll can be time consuming, as an owner your time is valuable and should be spent growing your business.

Small Business Accountants Can Handle Taxes

Small Business AccountantEven contract labor requires certain documentation. If a company pays a contractor more than $600 over the course of the year, a 1099 must be filed. Keeping track of the various tax amounts for various employees as well as which contracted employees earned how much can easily become a full time job. Small business owners have plenty of other details to manage without adding that to their plate. If only for personnel purposes, an accountant will save time as well as headaches.

In addition to managing tax issues for employees, a small business accountant will help navigate tax concerns for the business itself. Capital improvements, profits, loss, depreciation and potential write-offs may exist. Some small businesses pay taxes quarterly rather than annually, requiring an ability to understand and follow additional tax laws. An accountant can save you money by avoiding government  penalties and late fees but also by pointing out deductions, monitoring for “slippage” or missing funds and other ways to save money.

 Small Business Accountants Save You Time and Money

Factor in any unemployment, workers’ compensation claims or insurance benefits and the paper work becomes even more complicated and time consuming. The temptation for small business owners is to do it themselves in order to save some money. In reality, the time spent researching and calculating for an amateur versus for a trained professional reveals what value an accountant would offer. Accountants see the working of a variety of different businesses. A good accountant has their finger on the pulse of the local economy. So if you develop a good relationship with your accountant, they can also be a good sounding board for for your business ideas. If your accountant happens to find tax write-offs in the process, his value increases substantially.

Hiring an accountant doesn’t mean you, as a small business owner, are not competent. Quite the opposite, it means you understand the value of hiring to your weaknesses. You focus on making the business a Success  and let the accountant take care of tax and financial concerns.

See Also

The Basics of Starting a Small Home-Based Business

Is it Time to Expand Your Small Business?

Small Business Credit Cards

Rising To Success As a Home-Based Business Owner

4 Low-Cost Tricks to Promote Your Small Business More Effectively

Balance Sheet Health for Your Small Business

 Source:

This post was provided by Nixon Williams, a company specializing in accountants for interim managers and small business owners.

 

About Tim McMahon

Work by editor and author, Tim McMahon, has been featured in Bloomberg, CBS News, Wall Street Journal, Christian Science Monitor, Forbes, Washington Post, Drudge Report, The Atlantic, Business Insider, American Thinker, Lew Rockwell, Huffington Post, Rolling Stone, Oakland Press, Free Republic, Education World, Realty Trac, Reason, Coin News, and Council for Economic Education. Connect with Tim on Google+