6 Reasons you Shouldn’t Try to be the Hero Who Does Everything in your Business
Hard work is something to be proud of. But you cannot be proud of trying to do everything in your business – including the things you should hire professionals to help you with, for example, accounting. Accounting is a vital cog in your business, and a pro should handle it. Many entrepreneurs do not hire accountants and try to massage numbers on their own or through online software. Trust me; this is not the same as having a trained accountant working for you. Kindly take a minute to watch my video on Instagram, where I explain just one of many important reasons why you should hire an accountant. Remember to follow my page after watching the video.
Nevertheless, why should you not try to be the hero who does their own accounting in your business?
1. You don’t have a degree in accounting
True. Not everyone is an accountant. There is a reason why accountants go through years of training to attain their degrees. Most of them take on further training to become certified public accountants and tax professionals. This kind of training makes them help millions of businesses be compliant with various laws and pay the right amount of taxes at the right time. Since you do not have all this training, attempting to do any of the duties of an accountant in your business may result in a disaster. Avoid this by hiring an accountant.
2. Without an accountant, you won’t have a good business plan
Writing a business plan is not just about writing it. But you need advice about costs, revenue projections, and the appropriate company structure. You will not be able to do these things alone without the help of an accountant. An accountant has the training to understand your type of business, the employees you should hire, and how much you must pay them. All this information is vital for your business plan. Without it, you will build a business based on half-truths and lies. Such a business will not last.
3. Without an accountant, you will lose money through taxes
President Biden once said black businesses fail because they don’t have lawyers or accountants. This is true because accountants also help you through tax planning, strategizing, and tax preparation. They help you consistently save money on taxes. If you watched the video I suggested for you in the opening paragraph, you would have heard how much I saved a client tens of thousands of dollars on taxes. Imagine doing this every year for twenty years running a business? You would have so much money to reinvest in your business and grow it. But this is all something you lose for not hiring an accountant.
4. Without an accountant, you will lose opportunities to fund your business
One of the important things that an accountant helps you with is the preparation of financial statements. Financial statements are crucial. They tell your business’ financial story – how you earn money, how you invest more in your business, how you spend it, and whether your business is generating enough cash to sustain future operations. This information is exactly what banks want to see before deciding to give you a business loan. As such, if you do not hire an accountant, you will not have proper financial statements to provide to a bank upon the application for a loan. Without the financial statements, there is no loan that you get.
5. Without an accountant, you will lose valuable time to develop your products and get new customers
So, because you don’t hire an accountant, you will spend more time updating your bookkeeping and preparing financial statements – which I am sure won’t be really good. Everything about your business becomes half-done and rushed. You basically won’t have time to ‘work your business’ because you are busy ‘working in it’. There is a difference between working your business and working in it. You can’t do the two at the same time and expect growth. Working your business involves important, managerial steps that you take to improve your marketing and innovate new products or services. Working in your business involves employee-level work such as bookkeeping, accounting, production, and so much more. You are the owner of the business – so be the owner and hire an accountant for your accounting.
6. Without an accountant, you will lose IRS audits
Finally, an accountant is your numbers person. They know to explain everything about the numbers of your business. And importantly, they help you, as the business owner, to use your business money wisely – on business items rather than on personal spending. Therefore, this kind of discipline that an accountant gives you protects you from being audited by the IRS. But in the case that you had not initially hired an accountant and received an audit notice, hiring an accountant to investigate your books and prepare to represent you in an audit gives you a winning chance. On the flip side, if you decide to do everything by yourself, thinking you are saving money by not hiring an accountant, you will be basically throwing yourself into the lion’s den. The IRS will find many faults that you won’t even be able to explain.
The bottom line
I understand that some entrepreneurs struggle to hire full-time accountants because of cash-flow challenges. But this should not be an excuse for not having accounting. You can hire a certified public accountant temporarily. They will charge per hour to do specific tasks such as preparing your tax return or financial statements. This way, you do not have to pay thousands of dollars for hiring a full-time accountant, but you will pay much less and still get the job done. However, as your business grows, this way won’t be sustainable because you will now have more accounting, booking, and complicated taxes to be prepared. As such, hiring an accountant per hour could be expensive or just as good as hiring a full-time accountant. Contact me if you need to hire an accountant for your business. My contact details are on this page.
Frequently Asked Questions
- Is it worth it to hire an accountant?
Yes. Every business should hire an accountant to prepare financial statements and help with tax planning and tax preparation. Doing so allows companies to save money and boosts their chances of getting business loans if they need a financial boost to expand.
- How do I find an accountant to hire?
Several people claim to be certified public accountants these days. But you should only hire the best. Therefore, to find one of the best, you may do a simple Google search like “Accountant near me.” Search results will reveal websites of accounting firms near you. Always make sure to check Google ratings left by their previous clients so that you have an idea whether they are good accountants or not.
- Will an accountant save me money?
Yes, an accountant saves you money. They help you manage your budget and streamline your business expenses and save thousands of dollars in the process. More so, their tax strategies help you save more money on taxes.
- Should I have an accountant?
Yes, you should hire an accountant if you own a business and enjoy all benefits discussed in this article – such as saving money and getting business loans.
