Small
businesses also need an Berea accountant, not just multi-million-dollar
conglomerates. If your business venture is earning revenue, has regular
expenses, and you need to pay taxes on it, then you need the services of an Berea accountant. Hiring one will not only help you keep track of your financials but
also helps you see the bigger picture and allows you to manage your business
more efficiently.
Let’s think
“small business”, shall we? A lot of entrepreneurs may think that they do not
need the services of an accountant because their company is not generating
enough business yet to justify the expense of hiring one. Either they are not
earning enough revenue or they don’t have enough paperwork generally to warrant
the services of a CPA.
However, no
matter how small a business, it still needs to balance the books and maintain
accurate financial records. Maybe a company only has twenty people on the
payroll, but those twenty employees still need to get paid regularly. Maybe a
start-up is only earning a couple thousand dollars every month, but those
earnings still need to go on the books. Every dollar earned and spent needs to
be properly accounted for to allow a business owner to manage his or her
business better.
Without an
accountant to handle all of this, some of the employees might be asked to take
care of the financial records on top of their regular jobs. What happens is
that these employees will now have to split their time between these two tasks,
which can reduce their overall effectiveness and productivity. It is better to
just get the services of an accounting firm and let these employees focus on
the jobs they were actually hired to do.
Another
problem which small business owners might face when asking their non-accountant
employees to manage the financial records is that the accuracy of these
important records will be put in jeopardy. Keeping track of critical
information and paperwork like accounts receivable, accounts payable, and tax
documents can be complicated enough with a licensed CPA doing it. Will you
really trust a non-accountant employee to manage these crucial tasks? Take
note: a single mistake could mean costly litigation later on.
One more
thing to think about: tax legislation and regulations get revised all the time,
and keeping updated with all the revisions can be a huge headache, especially
if you’re not an accountant. Add to that the fact that a business owner looking
to grow his company will need to keep up with numerous laws that will apply to
a business at different stages of growth.
Hiring the
services of an accounting firm means they will now have the responsibility of
keeping track of all these regulations, understanding what they mean, and
providing guidance to the business owner about any changes that need to be
made, as well as providing other information that is relevant to the company
that hired them. This information can be used to help plan budgets, create or
remake marketing strategies, and generally influence decisions and/or policies
regarding the finances of a small business.
