It may seem like a cost that can be avoided, but when you own a business, you need an accountant to handle your financial affairs. That doesn't mean you pay your accountant to do your daily accounting work, but you need someone there on a regular basis to make sure your books are in order and to help you prepare periodic financial statements. Though you may feel that you can handle those kinds of things within the company, you are playing a fool's game to do that. Without the help of an accountant, you don't know if you're following current accounting laws or whether you should be doing things another way. Tax laws change every year, so unless you keep up to date, you don't know what the current laws are. Unless you are an accountant or tax advisor, there is no need for you to know the current laws. Although you may file your own personal taxes, you should never attempt to file the taxes for your business unless you have a degree in tax law.
Other reasons you may need an accountant is to assist you with accounting functions in which you lack knowledge. For example, if you're new to business ownership, you may not know how to account for inventory that you have to return to the supplier for recalls or expiration dates. Maybe you don't quite understand how to depreciate equipment for your business. There are many numbers of reasons why you may require the services of an accountant for your business. An accountant can also provide a budget analysis, future income projections, preparing financial statements, reconciling your bank account, and much more. In fact, it is sound financial advice for someone besides you or your bookkeeper to review the books for accuracy. This ensures that everything is entered correctly and there are no questionable entries.
Having an accountant on the books on a regular basis is something that you don't want to overlook. Even if you have a staff accountant, having someone on the outside that is not directly connected to the company is a good choice. This is especially important when you first open your business because you need someone to help you set up an accounting system and make sure that you understand how to follow through with it. Once everything is in place, and you know how to keep track of everything, you can use your accountant for financial advice and to balance your books on a monthly or bi-monthly basis. Don't make the mistake of thinking you can do everything without an accountant or you will find your business in the red quickly. Some financial decisions require the expertise of an accounting professional outside of your company.
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