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When a Small Business Should Hire an Accountant

Small business owners are acutely aware of the challenges they face with respect to finances from the onset. Margins are slim for most small businesses, which is why hiring an accountant can seek like a luxury for many owners.

The problem is that by neglecting to hire an accountant, you could end up costing yourself more money. 

Below is an explanation of when a small business should hire an accountant to handle it's taxes and general finances.

Lack of Financial Experience

Not everyone who starts a business has a keen financial mind. You may have a great idea about a product or service, which propelled you into being a business owner.

Unless you have someone with financial experience on your staff, hiring an accountant is a wise move. There is a significant difference between filing personal and business taxes, and having a professional to guide you through the process can be very helpful.

Even with general company finances, it can only help if an accountant looks over your budgets, payroll, and other documents.

You Are Being Audited

When you get a notice from the IRS about an audit into your recent tax filing, you must hire an accountant. Attempting to sort out this issue without any expert on your side would be a significant unforced error.

Even if you are not keen to pay the fees of an accountant, you should think about the penalties of the IRS finding you guilty of tax fraud. The back taxes and fines would be a serious problem for your business, and accountants cost a lot less.

You Don't Want the Hassle

Perhaps you have a business that only has a few employees. You have a lot on your plate, and are not keen to spend hours crunching numbers every week. You can pay a part time accountant to take care of such work for your company.

Even though you are adding an expense to your books, there is an advantage to the arrangement. You can spend more time working on other parts of the business, which could boost your profits in the short and long-run.

Keep in mind that accountants work very fast. The work that may take you three hours of number crunching to complete is handled by an accountant in less than an hour. Since you are hiring them on a part time basis, you only have to pay them per hour.

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Why Everyone Needs Financial Services

Financial Services Insulate Against Risk

The benefits of financial services for individuals and businesses are well documented. But, more importantly, those benefits are not limited to those with credit cards or checking accounts. In fact, agencies, including the United Nations and G20, have recognized the importance of financial inclusion for all people, regardless of income level.

Check out why you should be using financial services to ensure that you are moving toward your financial goals.

Financial Services Are Universal

One of the most compelling reasons for using financial services is that they are accessible to virtually anyone in the world with an Internet connection, regardless of their income level or where they live. Financial services also provide economic stability through access to capital and knowledge, both of which can help people achieve their dreams and goals.

Every Financial Service is Valuable

While many people associate financial services with credit cards and savings accounts, those services are only a few of the services available to consumers and businesses.

Other financial services that can benefit individuals and businesses include bookkeeping, tax accounting, and CPAs. Each of these services provide value to financial stability, regardless of income level.

Financial Services Provide Stability

When people have access to financial services, they are less likely to have to make poor decisions driven by desperation. That stability allows them to focus on goals and long-term success instead of short-term problems.

Financial Services Save Money

By hiring financial services to help keep track of spending, investments, taxes, and other financial issues, businesses and individuals can better understand where their money is going and create better ways to save money. It's estimated that people who use financial services save about $3,000 per year on average.

Financial Services Insulate Against Risk

When businesses use financial services to manage their cash flow and purchases—and protect against risk—they are better able to avoid disruptions that could threaten the viability of the business. For example, companies should never have to choose between paying employees and paying suppliers. 

Financial services provide the cash flow needed for businesses to pay when they are supposed to instead of being forced into early payment penalties or bankruptcy protection.

With so many benefits, it is easy to understand why everyone should use financial services. And while consumers and businesses certainly benefit from using financial services, they can also benefit from sharing that knowledge with others. 

By teaching people how to be financially stable and using that stability to achieve goals, everyone can enjoy the benefits of financial services.

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Lavin & Associates

Lavin & Associates is a Certified Public Accounting Firm with offices in New York and Boca Raton, South Florida. Since the firm’s founding in 1987, it has provided clients with professional and reliable tax accounting, bookkeeping and financial services.