Thursday, January 30, 2014

Should You Invest In An Accounting Expert?

Expert Accountant

Having your own business is no walk in the park. Even if it's just a small shop or a local corner stand, you are basically your own CEO, HR department, and finance sector all rolled into one. On top of your enterprise, the average small business owner needs to divide his time for his family, friends, and himself.

Considering these things, it's no wonder that one of the most overlooked aspects of a company is its accounting section. It's undoubtedly daunting for anyone, especially those new to the business world, to balance books and record all those fiscal transactions. Aside from numbers, you would need to make sense of all those numbers. And what about tax season?
The Argument

Even with so many obstacles going against the common small business owner, the main reason he doesn't want to (or refuses to) hire a CPA or professional accountant is because he wants to cut costs. It's no surprise seeing as that's one of an entrepreneur's objectives. Of course, saving money and keeping expenses low should be on every SME's mind.

However, many SME's have no accounting background or even basic knowledge about financial management. In the long run, this is going to hurt the company and its future. Yes, it's possible to do accounting on your own – in fact, experts recommend it so that you can have real hands-on experience about it. But nothing beats expertise achieved through years of hard work and intense training.

When You Need It

There are three stages during your business cycle wherein you might require the services of accounting experts:

  • During the start-up phase
  • Regular operations
  • For growth stages

If you feel that you really need to cut corners, you may employ an accountant only at ONE point in the business cycle. For example: you can get a CPA during the early years of your enterprise; but then decide to stop the services once your venture has gained solid footing. Many companies like taking advantage of an accountant's expertise mostly during their business' growth years.

Ask Yourself

As mentioned, not everyone will need finance experts. For those that think they do, here are some helpful questions to ask yourself. Remember to be honest; keep in mind that your answers will impact your business today and tomorrow:

  • Do you have a finance or accounting background? If not, are you willing to invest time and money in learning those subjects?
  • How prepared are you to wisely divide your time among all your commitments once you're the one doing all your accounting?
  • Are you aware of the prevailing tax and accounting laws in your state?
  • Would you be able to keep track of all financial transactions throughout an average day?
  • Are you prepared to handle payroll?
  • Do you know how, when, and to whom to file your taxes to?
Accounting Partner

If you're still uncertain on whether or not to get expert advice, seek out accounting firms that offer free online or over-the-phone consultations. Set up a meeting and discuss what you want for your business as well as any future plans. The single best thing you can do for yourself and your company is to let it flourish into its maximum potential.


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