The finance department in most small businesses is very often made up of one staff member, a computer and a filing cabinet.
Transactions are recorded and the books are balanced at the end of the month, so everything looks like it’s on track and you, as the owner, are relieved your “accountant” is on top of the financials.
But are they really? And, more importantly, are you on top of what your business is spending and earning? What about tax?
Unfortunately, administrative tasks are not the forte of every small business owner. A mistake many also make is trying to balance the books and run the business themselves.
Sadly, many realise too late that lack of proper accounting and financial management is ruining their livelihood.
The reality is that finances are an important job in any business. This is why there’s often the debate as to whether to do it yourself or hire a professional.
Accountants offer professional expertise to business owners but their services come at a cost, which could stretch your budget.
Take every step of your financial reporting process into account before deciding to hire an accountant. You’ll find all the tasks can be handled in-house with the use of an accounting solution, such as QuickBooks.
Another benefit is that several employees can access the financials to make entries, even sales reps who are on the road can access the software via a smart device and record their travel expenses, for example.
The consistent collation of financial information throughout the year will benefit you tremendously come financial year end or tax season (the time of year when accountant services are in high demand and their fees even higher).
Accounting solutions, especially professional tax accounting solutions, for small businesses offer a myriad of benefits, starting with the most important for a small business owner – affordability.
You will pay a lot less for a professional tax accounting solution than you would to hire an accountant or bookkeeper. The upfront savings is one of the most attractive benefits of filing your own taxes.
Once your accounting software is installed and you’re confident you’ve chosen the best fit for your business from the variety of professional tax accounting solutions on the market, you’ll be amazed at how easy it is to use and how quickly you can do your tax. In comparison, an accountant could take several weeks to process all the paperwork and file your tax forms.
There’s a reason they’re called accounting solutions, so there’s no need to be afraid of the system being too complicated and disrupting your business.
Professional tax accounting solutions “walk” you through the process of tax preparation quickly and easily – and you don’t have to be an accountant or have a diploma in maths to work the system!
Most offer a free trial and this is a great way to give the system a test run in your business, to see if it truly suits your needs.
The bottom line is that your bottom line could suffer if your finances aren’t recorded properly.