Accounting all year round

Posted on: 26 June 2015

A common mistake most small business owners make is underrating the importance of hiring an accountant. When running your business, do not confuse a bookkeeper for a professional accountant. Managing your books is something a self-taught individual can do, as it comprises of maintaining the financial records of the business. This is done by inputting transactions following a regimented schedule and ensuring that the books balance.

Small business accountants, on the other hand, will not be fully immersed in the daily transactions. Rather, they have a larger responsibility of compiling the financial ledgers, which are then analysed to create financial reports on the business' performance. Although an accountant can conduct the duties of a bookkeeper, an untrained bookkeeper would find it difficult to carry out an accountant's responsibilities. Here are some of the benefits of hiring small business accountants.

Professional expertise

As mentioned, an accountant does not simply fill in financial ledgers with the daily transactions of the business. It is upon this professional to analyse the business' profits and losses and figure out how to counter the losses to increase the business' bottom line. In addition to this, accountants are also tasked with understanding how tax returns work, how to implement vat costs and more. By hiring one of the professionals, you ensure that your business is meeting all its legal obligations while trying to keep your costs down and increase your profits.

Time effective

Several aspects of accounting can be time consuming. From figuring out your payroll, to filing tax returns and more, you could end up spending valuable hours on these tasks if you are not skilled in them. By hiring an accountant, you get to free your schedule, giving you extra time to invest in the running of your business. Additionally, being a trained professional, the accountant will not take as much time completing these tasks as an untrained person would. With the accountant, you can rest assured that your financial matters are in good hands as you concentrate on developing your small business to greater heights.

Wise counsel

Running a small business comes with its own set of challenges and pitfalls. If you were new to entrepreneurship, you would be best advised to have someone who can guide you through the complexities of owning a business. A certified accountant can give you wise counsel on financial decisions that you need to make. This ensures that your business does not go under due to misinformed decision-making. An accountant can advise you on investments, liquidity planning and even the financial forecasting of your business.

For more information, contact a local accounting firm like Scotts Chartered Accountants.