For businesses and entrepreneurs, the importance of accounting cannot be underestimated. Good accounting can make the difference between profit and loss. Here are just a few benefits of getting a pro to look at your books and do your accounting.
To Avoid Trouble
If you are paying federal taxes on your business income, that's a good start, but do you have all the local licensing you need? Have you been paying your local taxes, and how often?
Some localities require you to pay business income taxes quarterly or monthly when you first start out, and if you don't, you might be in serious trouble.
To Maximize Profit
Good accounting can help you find deductions and profits you didn't know you were missing out on.
If you want to maximize your profits and you want to be absolutely certain that you're getting and keeping every penny you possibly can, then it's a good idea to have a professional accountant look over your books.
To Save Time
It's tempting to think that you can save money by doing your own accounting, but the truth is that when you factor in the trouble you might get in and the profits you might miss out on, it's not so clear. Add to all that the factor of time and it really becomes less clear.
Accounting requires expertise and that expertise is the main reason to hire an accountant instead of keeping your own books.
There are basic vocabulary questions and a lot of jargon and acronyms. If you don't know YTD meaning, you probably shouldn't be doing your own accounting.
Perhaps the only thing more valuable than your time is your peace of mind. If you're doing your accounts yourself and you don't have the necessary expertise, then doing your own accounting may simply be more trouble than it is worth.
Managing money is not something that should be left to luck or chance, whether you're a private citizen, a small business owner or a big business entrepreneur.
The ins and outs of good accounting require expertise if you want to avoid trouble and maximize profits while saving time and reducing your personal stress levels.
Sharon McCutcheon, Scott Graham, Charles Deluvio, Tyler Franta