When it comes to running a business, forking out the money to hire an accountant can actually save you a lot of money in the long run. Although many small businesses can’t afford to hire someone full-time, even hiring a bookkeeper for just a couple of hours per week can make huge differences.
There are numerous ways that an accountant or bookkeeper can save you money. They can make your business run more efficiently, they will help you minimise your tax bill as much as possible, and they will be able to identify potential problems in your business model before they become major. Some of the main ways that accountants can help you save money include:
Via tax deductions or offsets:
Although you may not realise it, you may be missing out on a lot of potential tax deductions or offsets by doing your tax return on your own. Employing an accountant to both manage your books and complete your tax return can help you minimise these losses.
However, it is important to make sure that you use a seasoned professional who knows what they are doing. Try and find someone with experience relevant to your business, and don’t be afraid to pay a little more for someone who knows the rules inside and out.
They can help you make sensible business decisions:
If you don’t really monitor your cash inflow and outflow during the year, then tax time can be a mad rush to get everything together. A lot of people choose to employ an accountant or bookkeeper for just this reason. Having someone who is continually on the ball regarding your company’s finances can help you make wise financial decisions throughout the year. They can identify potential problems before they become major, which can help save you a lot of money in the long run.
They will save you time:
If you are a business owner, then you will know that time is money. Even if you have to pay a lot for an accountant, the chances are that it will be worth it. Your time is worth a lot, and the chances are that it could be better spent doing other things rather than keeping your taxes in order.
The money you spend on an accountant is tax-deductible:
Even if your accountant charges a fair bit, you need to remember that you can claim all accounting costs back as a tax deduction. This can help lower your taxable income, and will therefore reduce the amount of tax you pay at the end of the year.
As you can see, there are a number of ways in which a good accountant can save you money. Whether they simply make things easier for you to run your business or they actually actively save you cold hard cash, it is worth employing an accountant at least part time.