Five reasons why every small business needs an accountant
Many small business owners think that paying for an accountant is too expensive and it won’t benefit their business in any way. Here are five reasons an accountant may save you money – and possibly your business.
Help you to be compliant
An accountant can tell you what to do to ensure your company pays the least possible tax while remaining compliant. The knowledge they provide may range from simple issues, such as deductions, to more complex matters that may affect larger companies and multinationals. An accountant who is up to date with tax laws and rules, as well as your business, is invaluable.
Following on from the previous point, an accountant will know what you can claim as deductions. He or she knows what is deductible and what is not. This comes from the training they have as well as knowing your business.
All the information you have regarding your business is critical. All you need to do is provide your accountant with a complete set of all your business (or personal) financial records. They will take care of the rest. Your accountant cannot give you accurate reports without all the information at their disposal.
Behind the scenes
An important aspect of an engaged accountant is that they are always working behind the scenes. This is unseen to you (or anyone). This is critical because it allows you to focus on your business and not your accounts.
For example, if you ever need to submit documents to CIPC or SARS, your accountant will take care of it. This saves you tons of worry and stress. You can rest assured knowing that accounts are in order and that your business is compliant.
Not a penny more or a penny less
No one like to be out of pocket – especially with tax. This is where the accountant comes in. They will calculate down to the cent, how much you must pay – not a penny less or a penny more. This eliminates any penalties and interest for underpaying.
An engaged accountant is like a good construction company, building a house from the bottom up. The first step is the foundation.
We all know why we need a foundation. As the song goes, “the wise man built his house upon the rock”. If you and your accountant set up good financial practises, the foundation is laid down for a great house which will (hopefully) stand forever.
- Are you a small business thinking about hiring an accountant. Get in touch with me!
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