When operating a small business, your focus tends to be more on how much money you are making or how many products you’re selling. Less time is being spent on basic financial functions like staying updated on government regulations or growth opportunities. All of these factors play a huge part on the success of your small business. Having knowledge of accounting practices or lack thereof can have either have a positive impact or be detrimental on your business. Here are the top 8 misconceptions of accountants.
1.) Accountants are “Old-School”
Most accountants have a typical profile – quiet, serious and highly-intellectual. Regardless of the preconceived public opinion of accountants, gone are the days when accountants were just men in gray suits, with no interest in modernization. As a matter of fact, today accountants are actually lobbying for the use of modern technology in their trade such as cloud computing programs.
2.) Accountants are Only Good When Doing Taxes
There are some private individuals who only call their accountants a month or two before the deadline of tax payments are due. If this is you, then you won’t make the most of what an accountant can do for you if you only perceive them as tax filers. Contrary to such beliefs, accountants also provide significant help in budgeting and analysis and creating financial reports. At McMullan we can help you with small-business planning, helping you to assess how much cash flow you might need for expansions or advising you about which legal structures and devices might help your business thrive. Our accountants have a very wide range of professional skills in countless industries and are able to provide the best possible advice.
3.) Accountants Are a Waste of Money
A good accountant can provide significant benefits to your small business and in most cases pay for themselves in a short period of time. They can ensure your venture stays on the right side of the tax code and maximize the tax benefits your business receives. Having an accountant who can navigate the ins and outs of small businesses will leave you free to run your business, while saving money in the process. Accountants may cost you but trust me their work is valuable enough to save you time and money in the long run.
4.) Accountants Can Solve All Financial Problems
Hiring an accountant before you have money troubles is ideal and can be a great preventive measure. However, hiring an accountant when your finances are already going south will not guarantee success. They can keep you from encountering serious financial troubles with financial forecasts and analysis of your cash flow. It is very important to select an accountant you can trust!
Whether you are a sole proprietor or a small limited company, having an accountant can help you avoid penalties by keeping track of your numbers and making sure you make the tax deadlines. The figures within your accounts can show your accountant how your business is performing and they will be able to highlight areas of concern or those of opportunity. An accountant may be able to pick up on issues you’ve overlooked or be able to help you invest or save more money.
6.) Accountants Aren’t Included in Decision Making
With the rise of cloud accounting and technology to speed up the accounting process, a new role for accountants has taken form. Consulting and business advisement have become a major part of most firms. Today, they are more involved in creating strategic financial plans and recommending investment strategies.
7.) Accounting is Not Necessary
Regardless of whether you think hiring an accountant is worth it, one serious misconception that can harm your business is thinking accounting is unimportant. Accounting isn’t simply doing your taxes on time then forgetting about them; it’s a whole discipline of financial considerations that can harm or help your business. Knowing a lot about accounting practices and principles, even if there are some aspects of accounting you don’t use in your operations, is essential to doing business legally and finding new opportunities, markets and practices that can put more money in your pocket.
8.) I Can Do the Books Myself
Not necessarily a misconception, many business owners handle their own accounts and why not? There is plenty of accounting software to help. However, we all know that most successful entrepreneurs don’t reach the top because they spent all day bookkeeping or crunching numbers. They successful hire professionals, such as an accountant, to leave them free to grow. The smallest mistakes can be detrimental if you are not up to date and accurate if financial processes.
For more reasons why you should have an accountant for your small business click here.by