When we think of an accountant, there’s two main responsibilities that come to mind: payroll, and taxes. A proper accountant is much more than that. They can provide specific services to scale your small business, provide financial advice, or clean up messy situations with revenue. Properly tracking your expenses is crucial, after all. There are loads of reasons that you need an accountant; ask yourself some hard questions.
For The Small Business Owner
It may seem like you don’t have enough arms or enough heads with enough allocated brain space to get everything done. We’ve all been there; we all get it. Any small business owner understands that multitasking is the cost of doing business—an occupational hazard if you will. Even if you’re a skilled mathematician, you’re bound to make mistakes when you’re pulling fourteen-hour days, barely eating, and attending to phone calls and customer concerns at the same time. It doesn’t make you less of a startup champion; everybody needs some help.
Are you able to account for every penny? There’s no figure of speech here: can you do it? Business expenses only take a single day of going unchecked to spiral into chaos. If you can—wish ease—look at your balance, confidently know where every penny is, track it, and be proven right, you may be alright for the time being. However, the calm comes before the storm; if you’re able to handle finance tracking, but it took two hours out of your day, think about the fact that you had two hours of receipts and business expenses to go through. If your time is worth $100, $200, or more per hour, then you’re spending mentally-draining hours on a task that’s not providing you any income. Think about that.
For The Big Spender
A lot of out FR readers are businessmen or business owners, and a lot of business owners make one single mistake: burning through cash they haven’t made yet. Lofty apartments are nice, as are multiple cars and the like, but it’s important to plan for disaster at any curve. Being financially free and well-off can give off the appearance of invincibility, but nothing could be farther from the truth. One customer slips on your sidewalk, one financial crisis that affects your business going forward, and it can all be over. Don’t dump all your earnings back into your business; in fact, don’t run into that issue in the first place. An accountant can be a financial wizard when it comes to analyzing your spending and coming up with budget solutions.
Don’t Inhibit Growth
Many small businesses that are on the edge of greatness often have financial issues to inhibit their growth. Accountants also build reports and track spending, and in some cases, they can be your last line of defense when signing-off on big expenses. They can explore alternative means. They can look at how it’s going to benefit your taxes at the end of the year. Scaling your business is important; you don’t have to do it alone or risk doing it improperly.
The Misconception on Hiring an Accountant
40% of America’s workforce is (apparently) freelancers. That means writers, coders, and yes, even accountants. You don’t have to hire a full-time, in-house accountant for $80K a year and full medical coverage. Nothing crazy like that. If you want, you can work off of a monthly retainer—pay at the beginning of the month, reap the rewards until it’s time to pay again on the first. There are cost-effective ways to handle your desired solutions with a licensed and professional accountant. You just have to know where to find them.