In the early days of a small business, the owner often does everything from bookkeeping and accounting to marketing and sales. However, as the company grows, it becomes more complex and it's no longer possible for the owner to do everything.
At some point, most small businesses need to bring on an accountant to help with financial planning and tax preparation. Here are four reasons why you'll need an accountant for your small business in 2022.
1. Creating a Business Plan
As a business owner, you're almost certainly told time and time again just how important it is to have a plan in place. However, creating a business plan is easier said than done, and it's even harder to do on your own.
An accountant can help you create a realistic and achievable business plan that takes into account your current financial situation as well as your long-term goals. For this reason, it's best to work with a professional who understands the unique challenges, pitfalls and upcoming trends in your particular industry so that they can help you create a plan that really works.
2. Tax Planning
One of the main responsibilities of an accountant is tax planning. Tax planning involves looking at your business's current financial situation and projecting what it will look like in the future.
Accountants have extensive experience with tax law, so they know exactly how to structure a business in order to minimize taxes and maximize profits. They can also help you avoid common pitfalls such as not missing important deadlines.
Tax planning is not a one-time event, however. Tax laws change frequently, so it's best to work with an accountant who can keep up with those changes and adjust your business plan accordingly. A good accountant will also be able to help you understand the tax implications of any major financial decisions that you make throughout the year.
3. Expert Financial Advice
As a business owner, you have to make a lot of decisions about how to utilise your resources. An accountant can give you expert advice on these matters so that your business grows at the right pace. When you work with an industry expert you can gain an even deeper level of insight and understand your numbers on a granular level, which empowers you to make shrewd, profitable decisions.
4. Leverage Technology
Accounting has not traditionally been a tech-oriented profession, but thiis is no longer the case. Accountants are now using technology to automate tasks such as bookkeeping, invoicing and payroll.
Technology is also helping accountants provide more value to their clients through cloud-based accounting software that gives the business owner real-time access to all of their financial data. This can help the owner stay on top of their finances and make better decisions about where to allocate their resources.
On top of this, a great accountant will be able to recommend the right tools to centralise your data and streamline your operations so that your business runs like a well-oiled machine. Inefficient operations cost you dearly in terms of time, profit and even staff, so this benefit should not be overlooked.
Final Thoughts
In short, an accountant is a valuable asset for any small business. They can help you create a solid business plan, minimise your taxes, make sound financial decisions and leverage technology to improve your bottom line. If you're not working with an accountant already, it's time to reconsider in 2022.