Jan 5, 2023 — Accounting — Eric Giguere
Accounting is an indispensable business function that cannot be replaced. A well-managed financial situation is a key to a successful business. Although freelancers and solopreneurs may be proficient in handling accounting tasks such as reconciling bank accounts and preparing taxes for tax returns, it might be a good idea to hire a professional for your small business.
It can be difficult to decide who to hire. There are many types of accountants and each one can play a different role in your company.
This article will help you to understand the different types of accountants you might encounter during your search and the various ways you can tailor your relationship with them.
If your financial situation is not complex, it's a great way of saving money. If you are a single-member LLC without employees, your business does not need to handle payroll or business taxes. This is because of pass-through taxation.
As your financial situation becomes more complex, the benefits of hiring an accountant start to outweigh any cons. Accountants can help you keep track of key information, identify tax deductions that you are eligible for, spot growth opportunities, and maintain your records. Accountants can help you keep your taxes accurate and your finances in good shape.
If the following statements are true, a professional accountant can be a crucial part of your business's success:
You are losing time doing accounting. Your business's rapid growth is limiting your ability to lead and plan.
Once you have decided that an accountant professional is necessary, it's time to find the right one.
CPAs are Certified Public Accountants, while CMAs are Certified Management Accountants. Each designation requires that accountants take extensive exams and continue their education. CMAs and CPAs both offer complete services. CPAs are more likely to assist with financial analysis and taxes than CMAs. CMAs can however help with financial strategies.
As an alternative to offering all-year support, some accounting professionals might offer specialized services. Tax examiners and investment accountants can assist you with certain segments of your accounting problems.
Full-time accountants are not necessary. A good accountant will need a minimum salary of $75,000, while many businesses won't be able to afford the full-time work required for an accountant until they have over $1 million in revenue.
Part-time work is a great way to reduce your accounting costs while still having the support and assistance of an accountant. Part-timers are able to collaborate with other departments, such as HR on the payroll.
Your ability to manage the in-house staff may be limited if you don't have any accounting experience. You have the responsibility to make sure your employees receive the training and resources they need.
You can outsource to a company or freelancer to ensure your accountant is high-quality. Retainer-based providers allow you to have an accountant available on the phone even though you are outsourcing. Small businesses may also consider outsourcing, especially if they only require a few services per month. Many firms will allow you to either pay per hour or per service.
An hourly rate for an accountant or freelancer is between $100 and $275.
You don't need an accountant to do everything for you. Instead, determine what you want and what you can do on your own.
Some accounting functions are more difficult than others. You don't need any previous experience to manage your bookkeeping. If you have no cash, all transactions can be automatically entered into accounting software like Xero or QuickBooks.
Accounting and other tasks can be handled by professionals who are valuable resources. These are just four of the services you might consider outsourcing or hiring in-house.
Accounting can be a valuable resource if you are looking for advice on how to grow your business or start one. Startups, which often need investment and rapid growth, are a prime example of this. Accountants can help you:
Choose the right legal structure before you register your company. Make financial projections to help you plan your business. You can set up an accounting system from the start so you don't need to hire someone to fix it.
Some businesses require significant government paperwork. Annual reports for corporations must include financial statements and outlooks. Professionals can assist you in submitting your paperwork quickly and keeping you current with all legal requirements.
Accounting professionals can help with stock records and payroll filings.
Small business owners often hire accountants for tax filing. Taxes can be extremely complex. The average business filer, including freelancers, takes 24 hours to file all taxes.
Accounting professionals can help you complete tax filings more quickly and accurately by using their expertise. This could save you the time and expense of a tax audit. Your accountant may be able to represent you if you need. You may not have to pay if you outsource your audit insurance to a company that offers it.
Although it is expensive to hire a professional, it can help you save a lot of cash. It is possible to build trust with your provider, and they can help you find any deductions or credits.
Your finances will be affected by any major business change. Accounting professionals can assist you with any type of business change, such as franchising, changing legal structures, or moving online operations. An in-house or retained accountant can help you with this. They are available to offer advice whenever you need it.
If your tax situation becomes complicated, it is a good idea to hire an accountant. This will allow you to focus more on your business strategy, and other activities you enjoy. Professional accountants can help you organize your finances and ensure accuracy in all tax and government paperwork. This allows you to concentrate on strategic insights. These tips can help you decide which type of accountant you want to hire, and how many.