Many small businesses opt to be as lean as possible when running their operations, which is often the only way to do things as you acquire your first customers and build your credit history. But sometimes it’s difficult to decide when it’s the right time to start hiring others, or outsourcing back-end operations. Usually, it’s the time that you as a business owner start getting so busy that your significant other complains about you finishing paperwork at 11:00 every night.
Giving up control of one of the most important things in the business is difficult for most people, especially if it seems complex and like no one else will be able to manage it as well as you do. But to truly grow, increase your bottom line, and sleep at normal times, delegation is essential, and delegating the financial aspects is often the easiest.
Setting Up and Managing Business Operations
An accountant will set up and then regularly maintain your accounting system, including classifying your employees or contractors correctly, creating financial statements that follow state and federal requirements for taxes, and providing advice on quarterly tax payments.
This person is educated and experienced to oversee your payroll and other payments, and will dedicate more time to the task than you would since you have many other things to do to keep your business running. An accountant will create your year-end financial statements, close out your books, and submit your taxes, which will be well documented so if you are audited, everything is accurate and ready to hand off.
If you’re becoming overwhelmed keeping track of which bills are paid and unpaid, an accountant will be able to sort everything out and keep it under control. They will also be familiar with how to track various metrics that help determine your financial success and areas of potential improvement.
Growing the Business
When you’re ready to take your business to the next level, an accountant will be very familiar with your cash flow patterns, inventory, and pricing, to offer helpful information about the best areas for growth. They can also assist with scaling your internal processes smoothly.
When you have important decisions to make, an accountant is able to develop financial forecasts to ensure you are well informed on the market and new trends. This person can also work with you to develop a budget to support your goals.
So, having no time for running your business is a good sign that you need some extra help, but what about before that?
An accountant can be useful with a variety of business-related decisions that can have a significant impact on your future success.
- Choosing the best business structure (LLC, S-corp, partnership, etc): Not all structures are created equal. A trained professional can explain the pros and cons of each before deciding which will be the most profitable or beneficial for your situation.
- Analyzing the financial side of your business plan: an accountant will set you up with accounting software that can create professional reports and projections which will be very important if you’re applying for financing.
- Helping you open a business checking account: if your business is going from a sole-proprietorship to an LLC, having your personal and business transactions completely separate is crucial.
- Help set up processes for tracking expenses
D&M Accounting has highly trained tax and accounting professionals that can handle various aspects of your business’ financials, including payroll, taxes, and small business consulting. Contact us today to learn more.