Google searches for “accountants” reach their peak during tax season as that’s usually the time business owners eventually realise they need one. While it’s true that they can greatly assist in preparing your business tax report, you can also get the most from an accountant if you have them all year round.
Tax season is a crucial time for all businesses. The financial reports for the previous year need to be prepared and submitted to the tax office on or before the “tax day” deadline.
It’s clear that the financial aspects of your business should always be taken seriously. That’s why assigning a financial expert to manage your business’ finances is essential. It is unfortunate that some business owners only recognise the value of their accountant at tax time. Little do they realise that their finances (and taxes) would be in a much better condition if they had a great accountant working by their side throughout the entire year.
Accountants should not be viewed as an extravagance, they are your reliable business advisor
The reason why some business owners may choose not to hire a full-time accountant is that they believe the cost is just not worth it. They are likely to believe that it’s more cost-effective to manage their finances on their own throughout the year or rely on the assistance of a lesser-qualified part-time bookkeeper. It is common for business owners to feel like their business is “just not big enough” to justify having a full-time accountant on board. These business owners only seek the assistance of a professionally qualified accountant when it’s time to prepare the business taxes. For some, it is seen as more practical to allocate their already tight budgets to sales and marketing initiatives rather than hiring someone dedicated to “managing the books”.
Other small business owners may simply feel as though they don’t need an accountant since they already know all the ins and outs of their business so well themselves. This approach is very likely a false economy and it certainly introduces a significant key man risk into the business where all the business knowledge resides on one key stakeholder’s head.
There’s more to accounting than preparing tax returns
The need for an accountant to be integrated into your business can be justified at many different stages of the business.
- When you’re just starting up;
- When you’re company is experiencing growth;
- When you’re selling the business; and
- When you need to close it down
Your accountant should be with you every step of the way—through the ups as well as the downs.
Ask yourself: Where is my time better spent?
As a successful business owner, you very likely have learned how to produce basic financial reports. That’s great. But is doing the books the best use of your precious time? Is it the most appropriate way for you to grow your business? By introducing an accounting professional into your business, you get your time back to actually focus on other business fundamentals and growth.
With your many and varied responsibilities, it is likely impossible to check on every tiny detail when it comes to your business’ money matters. Your accountant can do this for you. They can give you the advice you need before you make a major purchase or investment. They can also help you leverage your existing assets and investments. Moreover, they can help you identify root issues when sales are going slow.
Outsourcing your accounting to Cloudstaff
Outsourcing your accounting to Cloudstaff allows you to get the support you need at a fraction of the cost of hiring your accountant locally. We have accounting and finance specialists, as well as CPAs who can be with you throughout your business life cycle, not just at tax time. With a Cloudstaff accounting team member, you can get both the specialised skills of a qualified accountant and the cost savings you yearn for. You can also reallocate your time to shifting to the more important, revenue-generating levers in your business.
It is totally understandable that business owners become extra mindful of their finances during tax season. However, consulting an accountant only during tax season doesn’t guarantee you lower taxes and higher tax returns. It is the proper ongoing management of your business finances throughout the year that will make tax time smooth and your overall financial health better.
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