Small business owners in Miami may put off hiring an accountant because they can’t see paying out the money when they have been doing the books themselves. However, experts say that is a mistake. Businesses, even startups, should make hiring an accountant one of their first priorities.
Accountants Start Businesses off Correctly
Many entrepreneurs start a business as a hobby or side gig and then move into it full time. That changes things under government tax laws and other regulations. An accountant makes sure the business is filed properly as either an LLC, S-Corp, partnership or sole proprietorship.
They can also make the necessary changes to your bookkeeping. Most businesses start off on a cash basis bookkeeping, but a growing business must adapt an accrual accounting method. An accrual method keeps track of financial transactions regardless if cash changes hands. This is important if you have net-30 customers.
Accountants Save Your Business Money
Those with experience in any type of business advisory miami fl understand that entrepreneurs aren’t always on top of their finances. They are too busy trying to get business and pay bills. Sometimes, entrepreneurs lose out because they don’t know all the tax deductions they can obtain, don’t know they can write off start-up losses for up to 20 years or that there are certain programs that will pay for some of their business costs.
Accountants are aware of these things. They keep up with new programs, tax incentives and everything else. That saves business owners money over the long term.
They can also advise you on where to cut costs. Since your accountant sees all the receipts and expenses, they can also see waste. A good accountant will also let you know ahead of time when you are not doing well and can offer possible solutions for short-term and long-term financial strategies.
Accountants Keep Your Business Legal
Just like accountants keep up with programs and laws that save business owners money, they also keep up with new tax regulations for businesses. They make sure you follow the rules and have all the paperwork ready in case the government ever does an audit. Accountants will also represent you in an audit, taking a load of stress off of you.
Miami accountants can be hired either full-time or with only a few tasks, such as filing cases and quarterly reports. A full-time accountant will keep up with your money monthly and could also be in charge of payroll, paying vendors and other duties. That could be worth it to a growing business where the owner doesn’t have the time to handle such detailed tasks.
Hiring an accountant will cost, but they could save you so much money, time and stress that you’ll find you will have more at year-end that you would if you tried to do the books yourself. Accountants are excellent resources for business advise and help you strategize for your next big move too. Hiring a qualified accountant for your small business could be the best decision ever.