It’s common for new small business owners to assume they don’t need an accountant because the company is small enough for them to handle everything on their own. However, just because someone has strong business skills in starting and expanding a business doesn’t mean they know how to keep the books, prepare tax returns and reports, manage payroll, and numerous other accounting services.
The Benefits of Obtaining Professional Accounting Services
In a recent study of small business owners conducted by QuickBooks, nearly half admitted they could use help from an accountant but hadn’t gotten around to hiring one yet. The biggest reasons for not doing so include concerns about the cost and lack of time available to search for a company that provides the accounting services they need. The longer the small business owners had gone without an accountant, the more likely they were to admit that they truly needed one.
Of the respondents who had hired a small business accountant, they listed these benefits as being among the most important:
- 88 percent cited time savings
- 87 percent cited reduced stress level
- 83 percent said they saved money by hiring out accounting services
- 82 percent said their accountant helped them be compliant with IRS matters and to understand IRS expectations better
Types of Services a Professional Accounting Firm Can Provide
Small businesses need help with a wide range of accounting services. One of the most common, and the service most business owners hire for first, is preparation of business tax returns. This can help new business owners avoid costly fines from honest mistakes and from missing out on tax deductions they can take. Other common accounting services include:
There’s a lot more to payroll than just determining how many hours an employee worked during a pay period and multiplying them by his or her wage. You must also determine how much to withhold for federal, state, Social Security, and Medicare insurance and potentially several others as well. You must run and submit payroll reports on a schedule determined by the IRS and your state and pay towards unemployment insurance and workers’ compensation on top of everything else.
Tracking of Income and Expenses
The IRS and state governments tax businesses based on the net profit after adding all sources of income and accounting for all tax deductions. It would be impossible to submit an accurate tax return without keeping track of income and expenses throughout the year.
Balance Sheets, Cash Flow Reporting, and Operational Reports
Preparing each of these documents is essential to understand the financial health of your business. However, each can be extremely time-consuming and will be more accurate when completed by someone with professional accounting skills and training.
Nolan Accounting Center Can Assist with these Accounting Services and More
Located in Greenfield, Wisconsin and serving the entire southeastern region of the state, Nolan Accounting Center offers a wide range of accounting services for small business owners. We invite you to learn more about our offerings and then contact us to request your initial consultation.