Most new business owners hear the word “accountant” and they think “taxes”. But the truth of the matter is accountants do much more than prepare tax returns for business owners. They can provide incredibly valuable service at every stage of the business life cycle from the start-up and growth phases to advice on selling a business when that time comes.
Here are our top 5 reasons every business owner should to hire a good accountant.
5 Reasons To Hire An Accountant
- You’re Buying a Business. Buying a business is a huge financial commitment. An accountant will be able to not only evaluate your own financial health and ability to purchase and run a business, but they will be able to evaluate the business’ finances too – before you sign on the dotted line. This is hugely important if you are buying an existing business. A professional accountant will be able to look deep into the financial records and let you know if anything looks wrong or worrisome. You will have a better idea of what you’re getting in to. Having an accountant also improves your chances for a business loan. The simple fact that you are serious enough about the business finances to hire a professional, will help you gain favor with the bank, not to mention the facts and figures the accountant can provide the lender when needed. An accountant can help you evaluate your loan options and choose the best one for your needs too.
- Professional Tax Assistance. We can’t have an accounting top 5 list without including taxes. Tax assistance is more than just preparing and filing yearly taxes. An accountant will be able to:
- Complete and file the required legal documents for the business, even helping you choose the right legal structure for the business.
- Advise you on changes in the tax law that may affect you,
- Prepare annual statements and maintain financial and business formation records,
- Represent and advise you during an audit.
- Evaluate your income, expense and cash flow to help you maximize resources.
- Business Plan Development. Business plans are simple when you’re a sole proprietor, but operations get rapidly more complex once you start expanding your services, adding employees, or take on more clients. An accountant will be able to develop and evaluate financial projections to help guide your business decisions. You’re more likely to succeed when you base your decisions on hard data that has been professionally evaluated.
- Finance and Payroll. Did you know accountants can be hired to manage your finance and payroll functions? If this is not your area of expertise or you don’t have staff to handle the process for you, delegating this function will make your life immeasurably easier. Thanks to cloud-based software, you and your accountant can have access to the same files and data in real time and make financial decisions together, the same way you’d do with an internal payroll specialist.
- You’re Selling A Business. Just like when you bought your business, an accountant’s insights and analysis during a sale will only help you. An accountant will make sure your financial records are in order and produce the statements and documents requested by the buyer. Again, having professionally prepared documents like this will only work in your favor. Your business will be more attractive to buyers for having these documents in order.
If you’re concerned about the cost of hiring an accountant, keep in mind that he or she does not have to be hired as a full-time employee. You can hire one on retainer or just for the services you need. This makes it much more affordable for small business owners to obtain the financial expertise they need to succeed.
Get More Business Advice From The Business Brokers At Crowne Atlantic Properties
If you are getting ready to buy or sell a business in Florida, contact Crowne Atlantic Properties at 407-478-4101.