Why Every Entrepreneur Needs a Personal Accountant
There are over 1.24 million accountants employed in the United States alone. A number that's set to rise steadily through the year 2022.
That high demand has been spurned in no small part by the hike in individuals pursuing entrepreneurial ventures who have been empowered by increasingly sophisticated online mediums.
Many of those aforementioned entrepreneurs start off managing their company's financial health on their own. They quickly come to realize though, the incredible value an accountant can bring to their organization and hire one.
If you're an entrepreneur wondering if hiring a personal accountant is the right move for you, keep reading.
Our team has compiled some tell-tale signs as to why you, in fact, do need a personal accountant.
1) You Want To Lay an Excellent Foundation
The early days of business ownership can be wild. Trying to source/refine products, acquire clients, manage cash flow and more.
One of the biggest victims of all of the scrambling you'll experience during this phase will be your business' books.
Because while focusing on doing everything you can to help your business survive, accurately tracking your numbers has a tendency to fall by the waist side.
A personal accountant can make sure you don't fall into that trap.
They can set you up early with quality accounting software. They can also help install processes to makes sure that all incoming and outgoing money gets tracked seamlessly.
This will reduce your need to double back and clean up messy books.
2) You're Confused about Taxes
There's no month quite like April to remind people of the value a personal accountant can bring to their lives. With entrepreneurs however, April isn't the only month you'll need to interface with the IRS.
Most businesses will need to send money into the federal government a whopping four times a year based on their estimated annual income. If this is your first year in business, estimating that income and understanding your payment obligations can be extremely stressful.
With an accountant by your side, you will get guided through not only the concepts behind quarterly taxes but the process of scheduling and making required payments.
Failure to send in estimated taxes on time could result in costly penalties. Accountants will keep your venture stay compliant and save that money.
3) You Want to Make Well Informed Decisions
As an entrepreneur, you'll get charged with making a ton of decisions across many aspects of your company. At the end of the day, you'll want to make sure that the decisions you make are helping your company grow.
In order to make decisions that put more money into your pocket in the long run, having a deep understanding of your financial health is essential. A personal accountant can give you that understanding.
Whether it's educating you on industry best practices or analyzing the return on investment of new hires, a personal accountant can give you pre-decision advice and post-decision analysis that is financially sound.
This expertise will help you avoid costly blunders and refine your future business processes.
4) You Need Help with an Audit
For many, there's nothing worse than getting notified by the IRS that you're being audited. Fortunately, providing the IRS with the information they need to close their investigation without incurring costly penalties or legal issues can be made a lot easier with a financial professional there to help.
An accountant will ensure the timely and accurate delivery of documents to the IRS. They can also keep you abreast of the latest tax rules which will help you stay compliant and avoid audits in the future.
5) You're Not Sure How to Pay Employees Properly
When your business grows so does your team. While employees can bring a tremendous amount of value to a business, bringing people on is not without its complications.
Juggling things like writing checks, handling overtime obligations and bonuses can lead to incorrectly paying employees. Those actions can result in legal issues or costly over expenditures.
A personal accountant will be able to analyze your unique employee situation. They will ensure everyone is properly classified and advise on which exemptions may apply to their pay.
6) You Need Help Getting Funding
Big ideas often take big investments. When presenting your pitch to a bank or an investment group, you'll likely be required to present a lot of financial information. This will help inform people of your business' current and projected financial trajectory.
With an accountant, you can be sure that all information required by investors and lenders is prepared professionally. You can also be sure that this information will be 100% accurate.
This help you avoid misrepresenting your company in a way that could lead to loss of investment capital.
Wrapping Up Reasons Why Every Entrepreneur Needs a Personal Accountant
If you're an entrepreneur running a small business, keeping abreast on your financial health is imperative to both your business and personal success. To that end, hiring a personal accountant can be extraordinarily helpful.
A personal accountant can help you start your venture on the right financial foot. They can help you stay compliant with the IRS. They can even help you manage payroll and acquire funding.
Bottom line, if you're looking to grow your business in a sustainable way and avoid financial blunders, you should consider bringing an accountant onto your team!
Are you ready to offload your finances to professionals? Are you ready to start focusing your limited time in more meaningful places? If you answered yes to either of those two questions, our team at Scrubbed can help.
Scrubbed is an end-to-end accounting firm. We will handle your business' books via familiar, easy to use cloud-based infrastructure. Our team offers a wide variety of services ranging from inventory management to tax preparation and beyond.