An accountant is a professional who takes care of the bookkeeping and develops financial documents like balance sheets, profit-and-loss statements, and much more. They handle all the financials of your business, prepare reports for taxes, and perform audits to your books. If you need assistance with handling that part of your business, an account is what you need!
When first getting started with your business or running a small business you will probably be able to keep up with all your bank account information and invoices and maybe ask yourself why you need an accountant when you can handle everything yourself? Your business all of a sudden-starts to grow- sales are going up and employment increases- now you’re stuck on the not so much fun side of it. We recommend hiring an account to help with the start-up of your new business that way your books are done right from the beginning and you don’t fall knee-deep in receipts and accounts receivable having to worry about taxes, paystubs, and bills. Below will be examples of how using an accountant for your business can help you grow:
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An accountant can point you in the right direction with your business structure and take care of all the paperwork to get you where you want to be.
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An accountant can create and send bills to customers making sure you get paid on time. In order for your business to keep functioning, it needs to produce money, so you want to make sure that you are charging and collecting money from customers on time and professionally.
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If you want your business to be successful, you need to know at what cost your selling your items, what you’re selling, and how much of it you’re selling. Having an account run all those reports will help you know what you are selling the most, which products are selling the least, and how much inventory you will need for the following months.
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Your accountant can pay your suppliers and keep track of those expenses that way you know how much money your company is making. The bigger your business gets gives you more of a reason to hire an accountant that way they can help make it run smoothly.
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If you want to know how many hours an employee has worked or how much they’ve gotten paid, you can have your accountant calculate all that plus advise you how much you need to retain for payroll taxes. They can also track which guests have paid and which ones haven’t that way you know how much cash you have on hand or if you need to send out late notices to advise. Accounts receivable can be tracked by accountants as well.
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Taxes can be confusing, especially for small businesses. An accountant can keep you up to date with any changes with tax laws. They also calculate payroll taxes for your employees and can keep up with tax changes on the products you sell.
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If you want to make all the right financial decisions for your business, accountants are able to create reports monthly and/or annual.
Having an accountant throughout the life of your business, whether you are just starting it or have been running it for years is smart. We understand how you might not trust anyone to help control your business since you did start it from scratch. Or maybe you haven’t had the best experiences in the past. That is why it is important to have an accountant that is an experienced and qualified professional whom you can trust.
There are many types of accountants but there are three distinctions you want to keep in mind:
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Accountants are bookkeepers but a bookkeeper isn’t an accountant. The difference between these two is that the bookkeepers aren’t required to obtain a license that allows them to prepare your taxes or represent you to the IRS.
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Certified Public Accountant (CPA) can put together and sign tax returns for both businesses and individuals and can act for taxpayers before the IRS for audits. They are certified through specific licensing requirements and examinations through the state.
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Enrolled agents can prepare your tax returns but don’t have the authorization to sign them. They also have to continue meeting their education requirements to maintain their licenses. These agents are required to pass a comprehensive examination that covers tax laws for both individuals and businesses.
In this generation it’s very easy to find a software online for your accounting and bookkeeping challenges. The downside to using these software’s is that you don’t have someone there to help when reviewing your work and making sure everything is accurate, like Maria F Diaz CPA in Miramar, FL does. This can leave a room for mistakes which can cause you to pay a price. You are able to hire an accountant or bookkeeper for a specific financial task and not necessarily as a full-time that looks at all your finances to keep them accurate.
I understand how all this can seem overwhelming and a lot of work. The truth of it is that it is! Owners can spend over 120+ hours a year making sure their books and taxes are up to date. You can spend a lot more time doing things you love, spending more time with family and friends instead of making work more difficult for yourself. Not only is time for yourself important but can you handle your business finances as well as an experienced accountant would? These are the questions to ask yourself if you are ever having any doubts.
