When you own a small business, you need to constantly be on top of everything. All the responsibilities fall on you, which can be very rewarding but also difficult. You can give yourself a break by delegating some of the work to competent professionals, like accountants. Here are four reasons you should hire an accountant for your small business.
1. Help you write your business plan.
You might not know that an accountant can help you even before your business opens. Writing a business plan is a crucial step in the launch of any successful business; it provides direction for you, and it also shows potential investors what they would be investing in. An accountant can help you figure out how much capital you'll need to start your business and even help you estimate your running costs and probable income.
2. File your taxes.
Filing your personal taxes can be confusing enough, but it's even more complicated when you need to file taxes for your business. You'll need to file your taxes in different ways depending on the structure of your business, whether you're operating as a sole proprietor, LLC, or S-Corp, and your accountant can navigate that for you. Remember to save all the proof of your operating costs, including receipts and wage statements, so your accountant has all the information they need to do your taxes.
3. Ensure you are complying with wage laws.
Laws regarding wages and employee compensation can vary by state, but it's very important that you're always in compliance. Failing to comply with all wage laws can open you up to lawsuits with disastrous consequences for your business. A good accountant can look over your payroll and make sure that everything is in order. They can help you calculate overtime when it's applicable since according to the U.S. Department of Labor, employees must be paid overtime when they work over 40 hours per week.
4. Provide budgeting help.
Even if your business is already up and running, you may need to adjust your budget at some point. Your vendors may raise their prices, or you may become very successful and decide to expand your operation. Both of these scenarios would require you to rewrite your budget to account for the changes, and a skilled account would be able to provide sound advice.
Having an experienced accountant on your team can do wonders for your business. It will free up your time and energy to deal with the more pressing matters of running your company. These are just a few of the ways that an accountant can benefit you. For more information, contact a company like Universal Accounting and Financial Services, Inc.