It can take a lot to get a small business off the ground. From setting a mission statement to hiring the right people to finding ways to spending money to make money, small businesses have a lot to deal with.
One time in particular when it’s a good to spend money in order to make money is investing in help from an accountant to help manage finances. An accountant can help with a number of things, but ultimately hiring an accountant can help a small business by providing financial direction and wisdom.
Here are four ways a small business can benefit from bringing on an accountant.
Selecting the Right Legal Structure
There are a number of question that come with figuring out the right legal structure to a small business. Slip up or skip over some essential checkpoints and you may find yourself in a world of trouble legally. But with an accountant on board (along with a robust accountants professional liability insurance policy), the accountant will be able to help the owners zero in on the most important elements.
Are you a sole owner or proprietor? Should you be an LLC? As an accountant, you can help to pick the right classification for a specific business needs and also help to identify expenses that can be claimed on taxes.
Help with Delegating
Time is money, and small businesses are usually short on both when they’re starting out. An accountant can help take on the brunt of the financial schedule that the business would be carrying during daily tasks.
If you own a small business, you’ll be focusing more on running it, and rightfully so. Giving finances the spotlight will take away focus from actually making sure the business is running smoothly and producing results. From payroll to balancing the books, an accountant can handle the time-consuming financial portion of the business.
Revenue vs. Expenses
Metrics aren’t just for understanding social media activity. Metrics can help you monitor your business with all its insights, leading you to solutions to pitfalls and areas you lack in productivity. An accountant can provide insight into your business’s progress, such as ratio of revenue to salaries and other expenses, return on investment, and marketing expenses.
Making Investors Happy
Many small businesses get help lifting off the ground via sizable loans from investors. These are investors who expect some sort of progress in your business by certain checkpoints. Having an accountant on retainer can prepare detailed reports for you that can be insightful and also provide you time before, say, an investor’s meeting so you can fix what you can.
About Walker & Associates
At Walker & Associates Insurance, we have been a leader in helping to protect businesses and families since 1960. Our coverages are written to cover your business inside out. For more information, we invite you contact us today at (800) 213-7126.