If you are a sole proprietor or a small business owner, you understand better than anyone just how many different hats you must wear throughout the day.
One moment, you may be your lead salesperson. The next, you are a marketing expert. Then, the moment after that, you are your company’s head of IT. You want your business to succeed, and that often means getting your hands dirty in all areas of the business.
One part of business that most small business owners dread to even think about is accounting.
Accounting can be time-consuming, complicated, and stressful, but that doesn’t change the fact that it is incredibly important. Most business owners have three options when choosing how to manage their books: do it themselves, hire in-house accounting staff, or work with an accounting firm.
Chances are you didn’t go into business for yourself just to follow your passion for accounting. In addition to not being passionate about accounting, there are a number of other reasons you should consider working with an accounting firm.
1. Dedicating Your Time Where It is Needed Most
Time is a valuable resource for small business owners. You are essentially the backbone of your business. Most likely, you put in a lot of hours. In fact, studies show that about half of all small business owners and sole proprietors work upwards of 50 hours per week.
It isn’t hard to argue that the most valuable resource for most small businesses is you, the owner/operator. So, why should such a valuable resource be dedicated to working on accounting when you can make a much greater difference in other areas of the business?
The less time you spend on accounting, the more time you can spend focusing on what makes your business unique and great.
2. More Cost-Effective Than Hiring In-House Staff
Having an in-house accountant is a nice luxury but not always one that small businesses can afford. A fully educated accountant will demand a salary that reflects their skills. This is a professional-level salary that could instead be dedicated to growth opportunities, hiring frontline staff, or launching new products and services.
In addition, for many small businesses, a full-time, in-house accountant may be overkill for their needs. Working with an accounting firm can provide the same benefits as having a full-time accounting staff at a fraction of the cost.
3. Accountants Aren't Just Bookkeepers
Some people believe that accountants simply prepare financial statements. However, an accountant does much more than that. When you hire an accounting firm, you are paying for expert advice and insight. Budgeting, tax planning, and payroll advice are all part of an accountant’s territory. Accountants can be your CFO to sound ideas off of and can provide guidance on how to financially realize your dreams for your business.
Having the full range of knowledge of an accountant working with you is a valuable asset. Accountants go through years of education and stay up-to-date on the latest changes to ensure their clients get the very best advice.
4. Simplifying Your Business
Business owners who do their own accounting usually have to purchase specialized accounting software, create their own filing and organization systems, dedicate time to do the accounting, and ensure that all documents are completed on time.
This adds a lot of moving parts to what is already a busy workday for most business owners.
Working with an accounting firm simplifies your business by handing over one of the more complex tasks involved in operating a business. When business owners pass off their accounting responsibilities, it means less planning around specific accounting duties.
5. Accounting Firms Can Reduce Errors
An error in accounting can prove to be costly. A simple oversight could earn the ire of tax authorities or result in incorrectly calculated balances. In addition, with rules constantly changing, what may have been perfectly acceptable just a year prior could be an error today.
When you hire an accounting firm to work with your business, you are hiring experts who dedicate their time to providing exceptional service and knowledge.
Focus on Your Business; Let Us Handle the Rest
At Glass Jacobson, we live and breathe accounting. Businesses of all sizes, across many different industries, have trusted us with their accounting duties so they can focus on what they do best.
Want to learn more about the benefits of working with an accounting firm? Contact us today or schedule a convenient time when we can reach out to you.
I really appreciate your tip on how accountants go through years of training just to make sure that they are up to date with the latest practices. My wife and I got married last summer, so this will be our first year doing our taxes as a couple. In order to make sure we are doing them right, I will be sure to hire an accountant since they have more education than we do!
Thanks for pointing out that you’ll have more time to focus on things that will make your business great if you will hire an accounting firm that can take care of everything. I will remember this because I want to have a small business in the future. My goal is to have a restaurant so I can share my talent in cooking with others. Additionally, I want to have a different source of income. I’ll do all your tips to make everything easy for me.
It’s interesting how you explained that working with an accounting firm can help us set our priorities and spend more time doing things to help the business or our lives in general. I work for a company and my boss has been thinking about partnering with an accounting firm so she can focus more on the business, so I’ve been doing research on how that might be an advantage. Thank you for this article, I’ll keep it in mind and let her know about these benefits.
Thanks for pointing out that by hiring an accounting firm, you can be sure that you will not commit business errors that can be costly. This is because they are experts that have the right knowledge. I will share this with my sister because she wants to have a food business in the future. She said that she wants to make sure that she will get help in understanding business reports because she wants to be aware of if her business is making or profits or not. It’s also crucial for her to do financial decisions with the right expertise.
Great information!!! Thanks for sharing this information regarding the advantage of working with accounting firms. I really enjoy reading this blog.
I found it interesting how you mentioned how tax errors can be costly in the long run and how hiring a CPA can help prevent these problems. My wife and I have usually done our taxes ourselves, but with the recent changes in tax laws, we feel like a mistake can be easily achieved. I will keep this in mind as we search for a CPA who can help us avoid costly mistakes!
Thanks for pointing out that a simple mistake in filing your taxes correctly would cause trouble. That is why it got my attention when you said that hiring an accountant to keep track of your financial needs is beneficial. I’ll be filling my taxes by the end of the month and I am planning on hiring an accountant to make sure that everything is done correctly.
It’s fantastic to learn that you can save money by hiring an accounting firm for your business. My brother is wanting to start a small business and he was wondering who he can hire for cheap to help him keep records of his financial accounts. I’ll be sure to tell him to look for an accounting firm to hire.
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I was not aware of how versatile an accountant is. I love that you mentioned you get experts and insight when you go through an accounting firm. The fact that they can help you realize your goals counts for a lot more than just adding numbers. My husband and I have come up with a life plan that will take us all the way into retirement. We decided to call on a professional accountant to help us realize our direction since they can do more than add numbers.