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Why Every Small Business Owner Should Consider Hiring an Accountant

Updated: Oct 14, 2021

Running a business involves many moving parts. And as the business owner, you’re ultimately responsible for all of them. At some point, every business owner who wants to grow their company must decide which tasks are holding them back from running their company effectively. Sometimes this is true even for entrepreneurs who are trying to get their first business off the ground.

Unless you have a passion and a knack for numbers, chances are the accounting duties of your small business will eventually hinder you from achieving your overarching goal of growth. That’s where an accountant can prove so valuable to your operations. If you’re interested in learning more about how a certified public accountant (CPA) can benefit your business, check out these points from Jazmin Guerrero.

1. Planning and Strategy

No matter where your business is on the path to your goals, an accountant can help you

develop a solid plan and strategy for growth by helping you:

● Determine what type of business entity to form. If you decide to register as an LLC,

determine how much it would cost to start an LLC in California.

● Write the financial section of your business plan.

● Create a realistic, workable budget for your specific goals and needs.

● Devise a financial strategy that benefits every aspect of your company.

● Check out this great work-from-home guide from Jazmin Guerrero.

2. Reporting

Accountants thrive on working with numbers. Find a trusted CPA who can get you essential

data, help you understand it, and use it to win over investors and make sound decisions. You

can expect your accountant to:

Create cash flow projections and modify them as need over time.

● Produce regular financial statements, including balance sheets, income statements, and

financial ratios.

● Prepare your company tax returns and file them with the state and federal governments.

● Incorporate software specifically designed for processing payroll for small businesses.

3. Growing

Your financial health is connected to every facet of your business. An accountant can study your work processes, advise you on changes that could help you move forward, and ultimately make your operations more efficient by helping you:

● Create and keep track of invoices for your clients.

● Conduct cost-benefit analysis for important decisions.

● Determine what loans to pursue and fill out applications.

● Develop and execute a debt management plan that will spur long-term growth.

Being a business owner, you have enough on your plate as it is. Don’t let financial complexities keep you from achieving the growth you dream about. Work with a reputable CPA who specializes in small business, and watch your company reach new levels in no time.

Credits to Gloria Martinez started to celebrate the advancements women have made and inspire them to become entrepreneurs and seek promotions in the workplace. Through this medium, she also shares her business expertise and vision to spotlight women’s achievements in the workplace.

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