Why Hire an Accountant for Your Business: 3 Practical Benefits
Some people might have told you that your business cannot fully function without the help of an accountant and a bookkeeper, but how do their roles differ? And how can they help your business?
You will come across various organizations that offer both services, while others can only focus on one. Before hiring them for your business, it is important to know what they are for and how they can add value to your company. By understanding the answers to these questions, you will know what you are paying for and how to assess their performance.
Differentiating Accounting from Bookkeeping
The two are often interchangeable, but they focus on two different things. A bookkeeper is in charge of the day-to-day recording of all the financial transactions. They also classify this data according to the right expense categories, carry out bank transactions, and prepare invoices.
On the other hand, an accountant performs the analysis of this data. They prepare the financial statements, perform the audits, take charge of taxation, and even provide financial advice based on the money flow.
In other words, a bookkeeper does the tedious work that will help the accountant do their job. That is why attention to detail is crucial for this job. A little mistake can affect the entire evaluation of a business's financial health.
Contrary to the common misconception that accountants are solely for filing taxes, they do more than that. They can give a businessman an informed financial perspective that they can refer to when making business decisions.
Why Hire an Accountant
While one person can do both jobs, it is not ideal for them to do so. Having two different sets of eyes to countercheck each other's work will ensure that both parties are doing their jobs correctly.
Having dedicated bookkeepers are important, but accountants know the dos and don'ts when filing taxes. They can help save your business from penalties or other tax surprises. Aside from these, here are the different ways of how hiring an accountant can benefit your business.
#1: Save your time and energy
No matter how well you grasp the concepts of accounting and bookkeeping, doing the work is always demanding. If you plan on doing everything on your own, it will take up much of your time and energy. Focus and accuracy are essential in performing these tasks, so one little mistake can affect your business in significant ways. If you know that you cannot commit to these things, it is better to find someone dedicated to doing the job for you and knows how to do it well.
#2: Help you maximize your tax deductions
Because accountants already know the ins and outs of taxes, they can help find ways to legally reduce your liabilities, not only during tax season but also throughout the year. They can help your company save money in ways you did not know possible.
#3: Help you lower the odds of a tax audit
Accountants understand very well how important it is to report all income. They know how diligent the IRS is when it comes to checking and balancing unclaimed payments. Having an accountant making all the preparation for you will increase your return's credibility, make you less suspicious, and avoid the possibility of an audit.
Conclusion
Whether you own a small or big-time business, having a dedicated accountant and bookkeeper can make your life easier. You will not have to worry about making reports, recording statements, and double-checking whether things are in the right order. You can focus your attention on how to make your business better and review your financial statements later.
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