To save money, many small businesses try to do almost everything in-house. While this can prove helpful in some situations, there are other times it could be detrimental in several ways.
If you are doing all of your bookkeeping and accounting in-house, you might want to think about some of the ways an accountant could save your company a good deal of money in the long run.
Avoiding Issues with the IRS
Without a mistrust, the most significant reason why every small business should hire an accountant is because of the issues that can arise if they are audited by the IRS. Penalties can add up to an even more significant figure than your year-end profit margin. If you doubt that, talk to any number of businesses that went under because they could not pay Uncle Sam those high penalties they were slapped with.
You don’t require to hire an in-house accountant, but you could use the services of an accountant such as a South Florida CPA that also offers bookkeeping services to keep all your figures current. That is one of the biggest reasons why your end-of-year filing is not in order!
Ongoing Cost vs. Profit Analysis
As an occupied business owner, one of the tasks that often gets set aside is keeping your books current. Even if you set aside a day to do that at month’s end, you can easily miss something in your hurry to catch up. Many small business owners lament missing supplies or processes costing the company way too much money.
If you keep your books up consistently, at least weekly, you might catch those things you are paying too much money for. Those are the costs that are eating into your profitability and perhaps one of the things a CPA or bookkeeper could keep an eye on. There is no secret that bookkeepers often know more about a company’s financial state than the owner or board of directors.
Freeing You to Do Other Tasks
Finally, the third benefit to hiring the services of a CPA/Bookkeeping team is to give you that time you need to be out on the floor monitoring operations. If you have your head in the books, there is no way to see that production is lagging or that customer service isn’t keeping customers happy.
Your presence is needed out on the floor, where your presence will keep things running smoothly. You’ve heard that old expression, “While the cat’s away, the mice will play.” Unfortunately, some employees live by that rule.
As a small business, hiring an accountant and bookkeeper in-house may not be cost-effective. However, you can always contract the services of a local CPA that has the staff to keep up with your books.
From staying current on accounts receivable and accounts payable, you will also keep tabs on cash flow. No one can do everything, and this is why accountants are a vital part of every small business’ success.