Hiring an accountant can be a great move for any small business, especially if you’re just starting out and don’t have a lot of experience with finances or tax laws. An accountant can help keep your books in order, ensure that you file your taxes correctly, and even provide financial advice.
When you join the Unitary Accounting family, you can feel confident that you have knowledgeable and experienced people handling your accounting demands accurately and efficiently. Jeffrey Steed and his team support small businesses with accurate and efficient accounting services. When you trust Unitary Accounting with your business tax preparation, you can concentrate on day-to-day business operations instead of taxes. Put simply, you get your time back.
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The advantages of hiring an accountant for a small business
The biggest advantage to hiring an accountant is that it takes the burden of tracking expenses and filing taxes off of you. Accounting can be complicated, but accountants are experts in the field and should be able to do it quickly and accurately. At Unitary Accounting, we know all the different tax deductions available to businesses, so we can help you get the most out of your taxes. Hiring an accountant also means that you won’t have to worry about staying up-to-date on changes in tax laws.
The second key benefit of hiring an accountant is the expertise and knowledge they bring to your business. Unitary Accounting can help you stay organized with bookkeeping, make sure that your taxes are filed correctly, and help you take advantage of all deductions available.
In addition to helping with taxes and bookkeeping, many accountants will offer other services such as cash flow analysis or financial planning advice. This can be invaluable for small businesses that need help managing their finances or are looking for ways to grow their business.
What Unitary Accounting offers:
- tax preparation,
- payroll services,
- record keeping and planning,
- business structures,
- account reconciliations,
- and financial statement preparation.
An accountant can also be beneficial for businesses that are planning to expand. Unitary Accounting can provide valuable insight into what steps need to be taken in order to do so, as well as provide advice on how to manage the financial aspects of growth. Additionally, we can offer suggestions as to where you might find financing or other resources for your business.
Having an accountant can also provide peace of mind. Knowing that someone experienced is handling the finances and taxes of your business can help reduce stress and free up time to focus on other aspects of running a business. An accountant can also give you advice on how to get the most out of your money, which could potentially save you money in the long run.
Additionally, having an accountant can also prevent costly mistakes like overpaying taxes or missing out on deductions.
Finally, an accountant can help you develop and maintain good financial habits that will be beneficial to your business in the long run.
Can I Do My Own Accounting for my Small Business?
Small business owners can do their own accounting. However, when the company grows and demands more of the owner’s time, an accountant can provide support. Accountants have a strong background in math and economics, along with experience in best accounting practices, procedures, and tools. They can also address legal issues, determine financial strategies, and generate reports.
What to Expect from your Small Business Accountant
At Unitary Accounting, we don’t just enter data and regurgitate it in the form of financial statements and paperwork. Instead, we personally take your information, process it, and present it back to you with the goal of helping you understand how your financial decisions are affecting your business currently and in the future. After reviewing your financial data, we sit down with you and help you create a plan to streamline your operations and make effective financial decisions.
The decision to hire an accountant for your small business should be based on your individual needs. Accountants are experts in their field and can provide valuable guidance when it comes to filing taxes, tracking expenses, and other financial matters. They also understand the ins and outs of the tax system, so they can help you take advantage of all the deductions available to businesses. Furthermore, many accountants can offer additional services such as cash flow analysis and financial planning that can be invaluable for small businesses. Just make sure you weigh the costs against the benefits before making a decision.
It’s true, changing accountants is sometimes a tough decision. You might have lots of questions and we can help answer them. It can be tempting to stick with an accountant who provides low-quality service simply because they know you and your business so well. You and your business deserve better. Contact Unitary Accounting and we’ll talk about making the transition to an accounting service that takes the time to answer your questions and provide expert guidance.
At the end of the day, whether or not to hire an accountant is up to you and depends on your individual needs as a business owner. If accounting isn’t something you feel comfortable taking care of yourself, then it might be worth looking into hiring an accountant to give yourself some peace of mind. A qualified accountant can provide valuable insight and advice that can help you save time, money, and stress in the long run. While it may seem like a costly expense initially, if your accountant is able to save you money through tax deductions or other means, then it could be well worth the cost.
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Frequently asked questions about Small Business Accounting
Should I outsource my accounting to an outside professional?
In most cases, the answer to this question is “yes.” When you consider how many hours you or another member of your staff will spend on record keeping, accounting, payroll, and taxes, it is typically more cost-effective to hire an outside professional for your accounting and tax needs. In addition to saving money, you will also be saving time. Tax preparation and accounting hours can add up quickly for your staff; hiring an accountant will lessen their burden so that their time can be better spent on other business activities. Additionally, you’ll have peace of mind knowing that a professional with tax and accounting expertise will be working in your best interests. Tax laws change frequently so you will want someone working for you who has the most current information to keep you in compliance.
Another consideration is security. Small businesses and nonprofits are often the victims of internal fraud. Having adequate separation of duties is difficult at these organizations given the relatively few number of staff. Hiring an accountant to assist you with those functions provides you a layer of protection against the occurrence of that type of fraud.
Should I consult a CPA if I am starting a new business?
Absolutely. This is a critical step to make sure your business gets started on the “right foot”. It is important that your business be structured correctly from the outset for tax, legal, and other purposes. You will want to make certain you are selecting the most advantageous form of business entity, and there are many considerations to be evaluated. You will have a whole host of other tasks that have tax implications, like applying for your Employer Identification Number (EIN), and you’ll want to be working with your accounting professional each step of the way.
Should I use cash-basis or accrual accounting?
To manage your books, you will need to decide on an accounting system. You can use either cash-basis or accrual accounting. Cash-basis accounting is a simple way to manage your books. With cash-basis accounting, you only record transactions when you physically make or receive a payment. With accrual accounting, you must record money whenever a transaction takes place, even if you don’t physically give or receive money. You must record two entries for each transaction in a double-entry accounting system. Consider using accrual accounting if you offer credit to customers. If you are unsure, an accounting professional can help.
What kind of records do I need to keep and what is the best way to keep them?
In business, it’s a good rule of thumb for the business to maintain a record of every cent it both earns and spends. To do so requires the precise maintenance of all business records including those related to employee payroll, accounts receivable, purchases, and other expenses. Your receipts and bank statements are also necessary for you to file your annual income taxes for your small business. It’s also important to keep in mind that, as your business grows, so too will your record-keeping demands.
For most companies, investing in a digital record keeping system is a fast and ideal solution. Digital records are convenient in that they are accessible from anywhere and relatively indestructible compared to records stored physically. Storing your records digitally is particularly convenient during an audit. Tax laws prescribe the standards for determining whether or not a bookkeeping system is appropriate.
Which of my expenses are deductible?
What is and is not deductible can change in any given year. The IRS is constantly revising and updating the tax codes. That is just one of many reasons why retaining the services of a professional accountant is a good business decision. Your qualified accountant will have current and accurate information on which expenses can be deducted, allowing you to make informed decisions to help you maximize the tax benefits of your purchases/expenses.
How can I improve my tax position to reduce my payout?
The quickest and easiest way to improve your tax position and reduce your payout is to work with an experienced accountant. They’ll help to make you aware of all deductions available to your business and will implement specific strategies to maximize your post-tax income and minimize your tax payout. As financial experts, they stay up to date on tax law and how any changes to current tax laws might affect your business.
The best part about using a trusted accountant is that they partner with you to help you understand your tax situation and what changes you can make within your business to improve it. By enlisting tax preparation and planning services, you’re setting yourself up for the greatest success around tax time (and really all year long).
How do I know if my small business is profitable?
A lot goes into determining if a company is profitable, especially over the long-term. Profit is the revenue remaining after you’ve paid all of your expenses. So, if you’re “in the black” after you’ve paid off all expenses, that generally means you’re profitable, at least for the most recent period of reporting time. Profitability, however, can be largely impacted by positive and negative cash flow, so it is important that you track and forecast both.