Statistics show that 80 percent of small businesses will fail within the first 18 months. Generally, the main cause of their downfall is poor financial management strategies. Despite the dire need to stay above water financially, many businesses choose to go it alone when managing funds. A recent report suggested that 53 percent of small businesses don’t use an accountant at all, an additional 27 percent use a simple pen and paper method to track money going in and out. Small businesses might have that independent spirit, but sometimes help is necessary in order for a business to thrive. Why does every small business need an accountant?
Spare Your Sanity, Save Some Time
Small business owners are often running around a mile-a-minute. Most are strapped for time and spread thin as they attempt to go it alone. With a tight budget, most put off hiring an accountant, even though accurate accounting & taxation services are often worth the extra funds for the time business owners gain back. Think about how much time and effort you put into managing your finances. That’s time stolen from focusing on running your business or engaging in new opportunities. The right accounting and taxation group can assist you in maintaining focus on what matters, all while keeping your finances in line with your goals.
Make Decisions in Real-Time
With the right accounting service, your business can make decisions in real-time. Too often, business owners are unable to calculate the potential consequences or implications of making a big purchase or taking on more employees. Having accounting services means that you have help with the budget, cash flow monitoring, and navigating any hurdles that might occur in real-time. Suddenly, you don’t have to wonder when or if you can do something. You can call up your accountant or pull up some files and find out right away.
Take a collaborative approach with your accountant or software services and make decisions together. They can pull up data to help you to approach big decisions and figure out exactly what your next steps should be in growing your company. Without this consultative relationship, you’re going with your gut and making decisions you could regret down the line.
Plan for the Future
A business is often only as good as its ability to continue growing and changing with market needs. Having an accountant can help you to devise a financial plan for today and the future. Together, you can pull financial reports and examine the seasonality of your business and your overall potentials for growth. Doing this won’t just help you to determine when to buy inventory or hire new employees, but it can allow you to budget for investments.
As the owner of the business, being preoccupied with day-to-day tasks can leave little room for this kind of planning on your own. With the help of an accountant, you can take a step back, look at the big picture, and allow them to offer ways forward in supporting the longevity of the business. As the saying goes, “Many hands make light work.” Having an expert or two on your side will make your journey all the less rocky.