Large organizations typically need an entire team of accounting and finance professionals to manage their financials. Nevertheless, small business owners lack the resources to hire full-time accountants and finance professionals. For the same reason, they often outsource accounting services from accounting firms, such as GTA Accounting. Moreover, an accountant for a small business can also benefit small business in various ways. Fortunately, SMBs can outsource accounting services from small business accountants from accounting firms like the one we mentioned earlier. In addition to preparing tax returns for small businesses, small business accountants can do more.
Benefits of Hiring Small Business Accountants
The following are the benefits that small business accountants can offer small businesses:
Handling payroll is more than just tracking hours your employees work, their wages, and issuing paychecks. Accountants have to navigate different federal, province, and local laws to file payroll tax returns. In addition, withholding rates and forms can change at any time. For instance, the provincial government may increase minimum wage rates to a certain level that is even higher than the federal minimum wage.
Further, business owners do not need to worry regarding comprehending and implementing new reporting requirements while outsourcing their payroll. A payroll service that a business may outsource from a small business accountant can monitor the recent regulations for it. Plus, an accountant can determine the impact of these regulations on a business. Outsourcing payroll services from professionals help small business owners avoid costly payroll errors and related penalties. Further, a small business accountant has access to complete and accurate payroll data for a business to file tax returns.
Determining and Claiming Valuable Tax Credits:
Tax credits are incentives that business owners use to mitigate their tax liability. Tax credits may prove of more value for business owners than tax deductions. It can happen as tax credits are dollar for dollar reduction whereas deductions lower taxable income. Unfortunately, only a few small business owners are aware of tax credits. For the same reason, millions of tax credits are not even claimed every year. Nevertheless, credible accountants are aware of tax credits that a business can claim. Thus, they also aid businesses claim those valuable credits while they file their tax returns.
Converting Data into Actionable Insight:
Whether you understand it or not, a business sits on a goldmine of data. A goldmine of data for a business includes accounting plus inventory numbers:
- Accounting plus inventory numbers
- Employee timesheets
- Marketing results
- What do your customers buy from you, and whey they buy from you?
An accountant for a small business use their client’s numbers to unearth valuable insights. In addition, they help small business owners use that information in the following ways:
- Better manage cash flow
- Identify process improvements to increase productivity
- Uncover behavioural patterns in the client’s customer base or the market
- Aid businesses decide when to hire and expand into a new market or take on debt
Determining Funding Opportunities:
Small business accountants can also identify funding opportunities for their clients. Besides, businesses needed access to funding during the pandemic. Further, small business accountants helped them find funding opportunities. However, the pandemic is not the only situation when a business may look for funding.
Small business accountants who comprehend a business and industry can help determine the current value of an organization. Plus, they can help small business owners realize the level of funding they require. Small business accountants can also evaluate finance options and assemble the necessary documentation for lenders or investors to approve your request.
Benchmarking a Small Business against Others:
Small business accountants can also benchmark their client’s business against others. They can determine if their clients are charging enough for products or services or offering employees competitive salaries plus benefits. In addition, they can determine if the business owners are managing their expenses well. It is not easy to know the right answers to these things for small business owners. However, small business accountants can help their small business clients find answers to these questions.
Benchmarking that accountants perform can help business owners know their performance against their competitors. Plus, it can aid them to set realistic goals while looking at their pricing, productivity, and competitiveness. Small business accountants can aid you in identifying financial and non-financial measures to track and eventually take the right actions.
Small business owners cannot hire full-time accountants and finance professional to manage their numbers. However, they can outsource accounting services from an accountant for a small business. Further, small business accountants are beneficial for small businesses to hire in various ways. Lastly, small business accountants can benefit small business manners in the following five ways:
- Managing Payroll
- Determining and Claiming Valuable Tax Credits
- Converting Data into Actionable Insight
- Determining Funding Opportunities
- Benchmarking a Small Business against Others