6 Benefits of Professional Accounting Services for Small Businesses

Everybody seems to have a side hustle these days. Some even manage to turn theirs into a successful small business. Scaling your side business, however, and turning it into your primary source of income can be challenging.

As a small business owner, it is best to focus on your core activities and outsource jobs that distract from what you're good at. If you don't have a background in accounting, your business will benefit from the expertise of a professional accounting service. Choosing the right accountants will not only make your job easier, but it can also add real value to your company.

What an independent accounting service can do for you

Manage your taxes. Let's get the obvious out of the way first: An accounting service will help you with your taxes. Even as a small business owner with a relatively simple business model, you must still fill in your tax forms correctly and file them on time.

If you don't do this, you could be liable for a fine or worse, a tax audit of your finances. This will cost you time and take your focus away from your core business. An accountant will ensure your tax forms are filled out correctly and submitted on time.

Implement tax planning and reduce your tax bill. Don't confuse tax planning and tax preparation. Tax preparation is the work you do to complete and submit your tax forms correctly. Tax planning is the advice your accountant can give you to help you take advantage of the tax laws and regulations and reduce your tax bill. An experienced accountant will cost you a bit extra, but they can also save you money.

Help you manage your business and personal finances. As a small business owner, your personal finances are directly related to your business income. An accountant will help you manage your money, advising you on how much you can afford to pay yourself, how to separate your business and personal expenses, where to save money, and where to spend more to make more. They will also help you monitor your income, costs, and cash flow.

Offer professional business advice. Not every great business idea becomes a great business because many people don't have the expertise to make it a reality. The advice you receive from an experienced accountant can be invaluable during the start-up phase of your business.

They can perform financial analyses and draw up business plans. A small number of accountants are experienced business advisors and coaches who can give feedback on areas for improvement and clarify your long-term vision for your company.

Your accountant can also offer advice on the best structure for your company and explain the differences between a sole proprietorship, partnership, corporation, or LLC. However, you should always consult with a business attorney when setting up your company.

Help you make well-informed decisions. The right accountant can sometimes help you grow your business, scaling it to a level you might not have thought possible. Having access to your balance sheets will give them insights into your company.

Since your accountant is not emotionally attached to your business, they can offer objective financial advice and help you make practical decisions based on facts. An accounting service may also have connections in the economic, business, and banking world that could be useful to you.

In most cases, accountants focus on financials and help you grow and manage your company. They are not business advisors, consultants, or coaches who bring a more entrepreneurial and global set of skills that are more comprehensive and valuable to businesses and corporations.

A good example is sales force management, training, and development. Accountants are not known for that. Business planning, leadership training, managing employees, and marketing are other areas where you should seek professional business coaches and advisors.

Allow you to focus on your core business. It’s probable that you did not start your business because you wanted to sit behind a computer doing your own accounting. You most likely started your company because you wanted to make money, put your particular skills to good use, and do something you enjoy. By hiring an accounting service, you will have more time to focus on your core business, saving you money, aggravation, and time in the long run. ?

Finding the right accounting service

As with all business decisions, you need to do your research. Before rushing into things and hiring the first accountant that comes up on Google, ask small business owners in your area for referrals. A recommendation from someone you trust is always a good place to start. If other small businesses use an accounting firm's services, they likely have the expertise and experience you seek.

As a small business owner, you will work closely with your accountant and must make the right choice for you and your company. Meet with more than one accounting service and ask for a thorough breakdown of their fees, services, experience, and references from existing clients. Base your decision on sound research, but make sure it is someone you feel comfortable with and believe you can trust.