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Why An Entrepreneur Needs a Tax Accountant

 

Let’s be honest – business owners don’t really enjoy bookkeeping or accounting. Often times, it ends up being crammed in late at night or on the weekends, instead of using that time to spend with family and friends. Some carry on with this under the assumption that hiring an accountant is a luxury or that he/she can do a better job themselves. That attitude needs to change.

Hiring an accountant is a critical business tool and investing in one can bring considerable benefits to you and your business. An accountant can keep control of your tax obligations, identify saving opportunities, and help you grow your business. And yes, as a bonus, they’ll give you back your weekends!

There are so many things an accountant can do for you but here are some key items where they’ll help your business immediately.

Clean Up Your Books Once And For All

When business owners do their own bookkeeping, it often happens only when time allows. That’s not really giving your financials the attention they deserve, and it results in:

  • data-entry errors
  • lost documentation (such as proof of purchase for expenses)
  • missed tax breaks
  • books that are out of date
  • missing tax or filing deadlines

If you hire an accountant, they’ll clean everything up so you have accurate records backed up and proof to supply in the future for tax preparation. They’ll even set you up with software that makes it faster and easier to record future income and expenses. That way you’ll never fall behind again.

No More Tax Headache

They’ll do your taxes with accuracy and efficiency. Don’t fall victim to late filing or payment of taxes as this can result in hefty penalties and interest. You’ll forget what it was like to dread tax season.

Plus an accountant can often reduce the amount of tax you have to pay. If you hire them at the start of the year and ask for tax planning services, they’ll come up with a strategy that keeps more money in your business. Even better, hire them at the time of start up and they’ll not only provide their many years of experience as guidance, but they can decide on what types of businesses you should be involved in. You should know the difference between S corporations and LLCs.

Improve Your Invoicing And Cash Flow, Collecting Money Faster

As a business owner, you have to do a lot yourself. There simply isn’t the money to outsource much; however, when deciding whether or not to get outside help on something, you have to ask if doing it yourself creates extra risks or costs.

The Risks Of DIY Bookkeeping And Accounting

  • You miss out on tax breaks by failing to claim valid expenses
  • You fall behind with invoicing (and with chasing unpaid accounts)
  • You underestimate your tax bill and get into trouble with the government
  • Tax returns and other compliance paperwork is filed late, resulting in fines
  • The books end up with mistakes that take hours to fix
  • You don’t have reliable information to help you make smart business decisions
  • You risk overpaying by failing to take advantage of available deductions

 

Let SoCo Help You Today

  • Many tax planning ideas are built-in at the beginning stages, especially if you are an S corp or partnership, so you need to loop your tax accountant in while the partnership agreement or shareholder agreement is created.
  • The tax treatment of your expenses in the first year are not straightforward – some are deductible, some are not, and for others it depends on how big the expense is.
  • We know what taxes need to be paid and when, so that you don’t accidentally incur big penalties.
  • Avoid overpaying by failing to take advantage of available deductions.

Contact us today, and help us take some of the legwork!

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