Running a small business is a lot of work. It is no secret that you will spend a lot of time not only working on your product and services, but you will also have to manage the business. One thing that can take a good deal of time is bookkeeping and the accounting aspect. This is why many people choose to hire a small business accountant to help them with all of the finances. Here are some of the things that an accountant will do for your business.
1. Keep Detailed Records
Record keeping is vital to a good business. If you don't have someone keeping track of all of the receipts, transactions, services rendered, payment, and much more, you could be in trouble. If you were to be audited by the IRS, they would need to see documentation and records of everything that you have done. For instance, if you reported on your taxes that you wrote off a client that didn't pay, you would need to show services rendered and lack of payment. If you don't have these things, you could be in trouble. An accountant will keep you on point with all of these things to make sure that you have good records and are protected.
2. Organize Your Finances
One thing that many small business owners fail to do at the beginning is choose a way to organize their finances. For example, when you first start your business, you will have to choose between the accrual and the cash method. One of these methods is the way in which you will record money. Accrual method involves recording when you earn the money, whereas with the cash method you record when you receive the money. If you don't choose how to record and organize your money it could become a problem since it will be recorded twice.
When you hire an accountant, they will help you to determine what method is best for you and how you should organize everything. This will save you time and money in the long run.
3. File Your Taxes
Taxes play a major role in a small business. You can lose a lot of money if you don't know how to file your taxes correctly. When you hire an accountant they will be with you the whole way so that when tax season comes they know exactly what deductions to take, what write offs to include, and so much more. In the long run you will save money if you hire an accountant from a business like Broutman & Co., P.C.