22 Lessons Learned: Accountants

How an Accountant Can Help Your Start-up

Hiring an accountant for your start-up business can offer a lot of benefits. The most obvious is probably having someone to cut through the entire red tape that new businesses normally have to deal with, not to mention the piles of paperwork. Yes, if you choose a good accountant, you can expect more from them than just balancing your books.

Below are the most crucial advantages that an accountant can offer your start-up business:

Efficiency

Because you own a business and are not an accountant, your time is equivalent to your money. Hiring an accountant buys you time to focus more on your business. Try comparing your hourly rate to the cost of this professional. If you are paid $150 hourly and an accounted charges $150 per month, that will be $150 well spent because there’s no way you can do all of your accounting responsibilities monthly in just one hour.

You have to keep track of countless deadlines, on top of deadlines with your own clients. Remember, losing track of those big dates will mean IRS penalties and fines, which only adds to overall costs.

Valuable Information Source

The American tax code is not designed for individuals but rather for businesses, which are job creators. Aside from that, the tax code is by itself complex, and even with a business, you still won’t be able to benefit from it much if you don’t truly understand the code. And take note that the code is always evolving – what you understand now may be different next year. But there’s no doubt about one thing – taxes are not what you’re in business for.

Pro Advice

Personal expenses alone are already difficult to keep a tab on. What more when you add a business into the mix? Unless, of course, if you have an accountant who helps you monitor your cash flow and separate your personal and business finances. The IRS is actually quite tough on businessmen who mix the two. There’s a chance you’d trigger an audit, and the burden of proof in terms of establishing that the questionable expenses are indeed business-related, is all on you.

Business Growth Support

No business owner doesn’t want growth for his business. But the problem is when your love for your business is too much that you begin to make irrational, emotionally charged decisions. We all know what emotions can do, and that is why working with an accountant – a person who has an objective detached view of your business – is often a wise move.

More than Balancing Books

Lastly, working with an accountant doesn’t just mean having someone to balance your books. It means that you will be getting other kinds of professional help in other areas too, such as business incorporation, financial reports, business deductions, and the rest. But of course, because accountants are not created the same, you need a bit of research to know who’s best for you.

5 Key Takeaways on the Road to Dominating Taxes

5 Key Takeaways on the Road to Dominating Taxes

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