8 Reasons Why You Need to Hire an Accountant

Starting a small business and need to engage an accountant to help you get set up and ready for your new venture? We share tips and advice.

Introduction

Starting a small business and need to engage an accountant to help you get set up and ready for your new venture? We share tips and advice.

Why do I need an accountant?

If you’ve got a small business, you’ll probably need to start paying taxes soon. Here are some of the main reasons why you might want to consider hiring an accountant to help you get set up. Tax Return and Accounting Whether you are an individual or a company, you’ll need to fill out tax returns.

There are certain tax return forms you must fill out depending on your financial position. Whether you have an S Corp, partnership or sole proprietorship you’ll need to fill out these forms. Each year you must fill out your income tax return and your tax accounts for the previous year. If you make a profit then you’ll be taxed at the standard rate.

If you make a loss, you’ll be taxed at the reduced rate of 15%. How do I prepare my tax return?

Why is it important to find the right accountant?

Think about all the things you do every day. You work, you run errands, you go to the bank, you pay your bills, and even read the news and watch TV. All those tasks you do every day are in the process of being done by someone else.

What happens when something goes wrong? Failing to keep your books up to date could cost you thousands in fines and penalties. By failing to follow up on a tax return or withhold from your paycheck, you could be forced to pay income taxes that you didn’t have to pay, or even have to pay a penalty.

If you neglect to tell your accountants the whereabouts of the receipts for the supplies you used for a remodeling project, you could lose thousands of dollars in tax deductions, or worse, you could have to pay income tax on supplies that you didn’t even use.

How do I find the right accountant?

To help you find the right accountant to help you, we spoke to Leslie Meier, Esq., owner of Accounting Analyst. “There are four key qualities a great CPA possesses,” says Leslie. “If you’re looking for an accountant to help manage your small business, you’re probably already familiar with a few of the common ones.

For the most part, if you’re looking for an accountant, you know exactly what you want. What are you looking for when it comes to choosing a good accountant? “First, be clear about what exactly you need. If you’re new to the business, you need help getting started. In most cases, an accountant will specialize in that area.

For example, if you are selling handmade goods, you would hire an Etsy or Etsy Shopkeeper CPA. “Second, set clear expectations for your accountant.

Photo by Dziana Hasanbekava on Pexels.com

What are the benefits of hiring an accountant?

Flexibility

As a small business, you want the flexibility to do business any time of the year, however you need to remember that as a business owner you are responsible for various taxes. You must be able to keep receipts and manage all your paperwork.

Transparency

As a business owner, you know the inner workings of your company, which allows you to see the big picture and think holistically. And you also understand the challenges that others in the company may be facing.

Conclusion

Here are a few things you need to consider when engaging an accountant. Make sure you get help. You need to get someone who has experience in the industry you’re entering and has good communication skills. Also, find a reputable accounting firm or business to assist you.

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