Hire an Accountant or Fly Solo?
What does every small business owner we talk to say they dislike the most? Spending time on anything that's not directly related to growing or improving their business.
Most small business owners recognize the importance of those necessary ancillary tasks. If you don't support the primary activities of your business, you can't stay in business. How can you keep selling your product or service if you can't process a payment or send out a bill, right? We all just want to spend less time on those areas.
What is the #1 least favorite thing small business owners like to do? You got it, accounting and taxes, and for good reason.
Unless, of course, your business is accounting and taxes. Our tax system is seemingly ever-changing and business accounting can get very complex very quickly. So, what's a small business owner to do, hire an accountant or fly solo?
If your business is very small and straightforward, accounting and/or tax software may very well be the answer for you. If your business is growing and more complex, however, there are three reasons you might want to consider outsourcing your tax and accounting work.
TIME IS MONEY
As a small business owner, you are the master of your domain. You know your business, your industry and your customers. But keeping up to speed on tax laws and software upgrades takes time... and time is money. And if you're not already up to date on how to use your software effectively, is now really the best time to learn?
If your time can be better spent on growing your business, contacting clients or negotiating contracts, hiring an outside accountant can save you money in the long run.
THIS IS THEIR TURF
Accountants are trained for this. They know their stuff. They can spot errors and trends and holes and entanglements that many of us would miss. A good accountant can not only save you money, their expertise allows them to provide a clearer (and objective) financial picture of your business, along with helpful guidance.
THEY HAVE BETTER TOYS
And by that I mean software. Accountants use heavy duty software that enables them to go further and dive deeper than your software likely does. That, in combination with their in depth knowledge, means that a good accountant can give you a more complete financial review and overview over your business. And to boot, you'll get better insights that can help with effective future planning.
One piece of advice I have for solo-artists and accountant partners alike: get your finances together now for tax season! Deadines are approaching quickly. If you miss them, you can be sure the fines and penalties (and stress) will follow.