Why do I need an accountant?

Your accountant is one of your most crucial, valuable advisors that you as a business owner can have. Technically you do not need an accountant, but odds are that you will be too engaged in running your business to do all your accounting paperwork yourself. The service you receive from an accountant reaches far beyond the filing of tax returns. During the start-up phase, they provide fundamental advice and assist your decisions as your business expands and grows.

There are many benefits in having an accountant, such as:

  • Identifying tax deductions that you qualify for
  • Early detection of possible problems, for example theft of stock, increased production costs not recovered, customers who are not paying, etcetera.
  • Ensuring sufficient cash flow levels
  • Evaluating and reporting on areas of growth, management and possible need for financing
  • Financial reports to acquire financing
  • Accurate and timeous preparation of tax returns

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Determine what you want your accountant to do for you.

Do you need your accountant to do bookkeeping?

That means your accountant needs to produce statements and evaluate the health of your business on a frequent basis and not only at tax-time.

Small businesses stand and fall by their cash flow and accountability.

Accurate records along with thorough analysis and processing, provide small business owners a solid foundation on which to make decisions and design growth plans for their businesses.

Accountants verify and analyze your company’s day-to-day transactions.

Accountants turn your raw data into useful information. Therefore, data entered is verified, reports are generated and analyzed. Audits are performed and financial reporting records are prepared.

These include tax returns, income statements and balance sheets. This analysis of financial information provides valuable information for forecasts, trends, opportunities for growth and when to be cautious on the management of cash flow.

Your account allows you to look at the big picture of your company.

It is critical for ongoing success to ensure the accuracy of the data to enable you to make informed decisions for the future of your business.

People often ask what the difference is between a bookkeeper and an accountant.

The bookkeeper merely captures your data of your daily transactions in your company, whereas the accountant turns your data into useful information to help you make sound decisions regarding your business’ management and growth.

Every year tax legislation changes leaving small business owners with conundrums when facing financial decisions, for example knowing what tax deductions can be claimed. Accountants stay up to date with these new legislations and can offer expert financial advice to develop budgets and set financial goals.

So the more obvious and proper questions would rather be: Do you only want to keep track of your day-to-day transactions? Or, do you want useful information derived from your day-to-day transactions by an expert financial advisor, namely your accountant, at your fingertips?