4 Reasons You Need an Accountant

Despite what popular culture would have you believe, accountants aren’t just human calculators.

Maybe you think they’re simply trained to fill in a tax return for some poor, unorganized soul.

In reality, they are highly trained business and finance experts with a lot to offer your company or brand.

If you don’t already have one, here are four reasons why you should consider making this all-important hire.

1. Saving You Time and Money

Nobody understands the phrase “time is money” better than a self-employed individual. In most cases, the only time you are earning is the time you are working, so anything that takes you away from your job is costing you money.

Dealing with finances then is a problem, as it is a time consuming task, especially as your company grows and has larger pools of income and/or expenses.

Bringing in a professional whose primary role is to maintain your finances means that your valuable time is not absorbed by filling in records or forms and can instead be focused on achieving business success.

2. Ensuring Tax Returns Are In Order

Confusion over tax returns, mismanagement of financial records or expenses claims that are not backed up by evidence can all lead to serious financial penalties and other difficulties that can damage, or at least interrupt, smooth business operation.

Accountants monitor and manage finances year round, through detailed bookkeeping. As a result, when tax season rolls around, you are safe in the knowledge that your returns will all be accurate and complete, and that you won’t be facing any nasty surprises later on in the year.

3. Negotiating With Suppliers

As an entrepreneur or small business owner, it is likely that your focus is on external aspects of your company. Whether it’s watching for trends, reacting to customer needs or creating marketable products or services, you are looking for ways to increase profitability from exterior sources.

An accountant however, is much more suited to looking at internal aspects of the company’s profitability, especially when it comes to suppliers. Their focus is on achieving the best prices for essential resources and therefore they are able to maximize profits by ensuring you are not overpaying for supplies.

4. Providing Business Advice

The business acumen of an accountant is not to be underestimated. While you may just be starting out on a new business venture, they have most likely been in the industry for many years. In order to become a qualified accountant, you must study the finances sector at a degree level, as well as gain a considerable amount of experience in the field.

You don’t spend all this time in the business sector without picking up a thing or two. These two sources of knowledge combined allow many accountants to become adept at spotting financial pitfalls, red flags and opportunities for improvement.

When developing a strategy, business campaign or picking up new customers, clients or property, discuss the move with an accountant as their counsel could be highly valuable. Occasionally, this advice may be difficult to hear — perhaps they suggest you avoid a move you are passionate about.

The fact of the matter is that an accountant does not have any emotional or sentimental involvement in your business or brand and can help make cold, hard, yet beneficial decisions you may have otherwise avoided.

(Photo by FirmBee / CC BY)

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Russell Smith, of Russell Smith Chartered Accountants, is an experienced accountant and business owner with over a decade of experience in both fields.


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