When they are conducting their research to open their own business, or even after a long time in the market, many entrepreneurs usually ask themselves about the real need to hire an accountant such as Susan S. Lewis, Ltd for example. After all, what is an accountant for? What is he going to do for me? Am I obliged to hire one just because I started a company?
For a small business, any expense – especially at the start of the business – should be avoided. But is accounting an expense that can be cut from the budget? To facilitate the answer, we will list the 5 main reasons for you to hire “or not” an accountant:
1 – A Good Accountant Works To Prevent Your Company From Paying More Taxes Than It Should.
A well-structured accounting generates quality information for efficient tax planning. In your company’s case, what is the determining variable that makes one option better than the other? Every year, your accountant must make simulations for your company in these three regimes and identify which one your company will pay less tax within the year.
2- Your Accountant Will Keep You Informed About The Regularity Of Your Company Before The Government.
Few people know, but the Government, through the Federal Revenue and other public bodies, obliges companies of all sizes to regularly deliver information of interest to them through statements known by accountants as “accessory statements.” These statements with your company’s accounting, tax, and labor information are delivered by the accountants by the regularity imposed by the Government (some statements are monthly, quarterly, and others annually).“ When not delivered, they result in fines). Therefore, when choosing your accountant, always ask about transparency in controlling your ancillary obligations.
3 – A Good Accountant Improves The Financial Health Of Your Business.
Unfortunately, most traditional accounting office’s help very little in their clients’ planning and financial management! Good cash flow management, for example, is essential for your company to stay financially healthy. When drawing up your company’s financial plan, always consider the need for consistency between your business’s cash flow and the records your accountant makes monthly in the accounting books that are your company’s official documents.
When the entrepreneur ignores the alignment between the numbers of his cash flow and his formal accounting, the results can be catastrophic, causing problems such as non-compliance in the company’s accounting statements or the income tax of the partners, deficit balance sheets, accounting imprecise that often present non-existent profits and consequently difficulties in obtaining bank credit precisely because it does not present accounting consistency.
4 – The Accountant Works To Reduce His Risk Of Labor Lawsuits.
One of the most important assignments of an accounting firm is assistance in the personnel department! When the time comes to hire employees to help grow your business, you will inevitably find that there are many bureaucracies to follow with every new employee. From the moment of hiring to the final day-to-day work of your employees, your accountant will guide you on all the documentation and rules of labor legislation to be followed by your company, in addition, of course, to calculate the payroll, process payslips, and others—documents relating to its employees.