Many small business owners are experts in the specific product or service that they offer, have no doubt about it. However, an equally common feature of the small business owner is that they lack several of the necessary skills to completely administer a business. Someone who is great as a floor manager at a manufacturing company may not be as great at balancing the books; some bean-counter who is a whiz with numbers may not be good at operating machinery or equipment. Whatever the circumstance, everyone has a weakness.
One of the most common weaknesses businesses owners have is lack of financial planning and accounting skills. These skills are quite unrelated to most other tasks an owner is called upon to do, so if they haven’t received specific training on how to do it or perhaps studied it in school, they may simply not know how. Or worse, they many know just enough to be dangerous, and end up getting themselves in hot water with the IRS through some questionable deduction practices.
That is why I recommend that nearly every small business owner who doesn’t have experience or a degree in finance hire an accountant; they bring a huge variety of benefits to the average small business, often at an extremely reasonable price.
Not only will your accountant work with you on both your business and personal returns (where it is not uncommon that they will save you thousands of dollars above and beyond what you would find yourself), they can also help streamline the operation of your business on a day-to-day business by providing things such as managed payroll services. Payroll, coincidentally, tends to be consistently reported as the number one least favorite tasks of managers and owners across all industries, for several decades now.
They can even help you with your general business strategy. Having cash flow issues? Your accountant can help you isolate the cause and develop a strategy to deal with it. Planning a large equipment purchase? Better make sure that you are calculating deprecation correctly or you could be leaving tens of thousands of dollars in the government’s pocket.
The services of an accountant often pay for themselves within just a few months of service, so if you don’t already have one, contact a local accountant today and begin building your relationship.