Did you know that 80 percent of small businesses in the United States fail within the first 12 months? And do you know why? Well, the main cause of failure to any business is poor financial management. Most small business owners like to go alone when managing their money.
While it doesn’t mean that managing your finances on your own is worse, you cannot underestimate the power of hiring your accounting firm to manage the finances of your small business. Here are reasons why you should go ahead and hire an accounting firm.
Maximizing Your Deductions
Most business owners usually look for ways they can maximize their deductions. By hiring an accounting firm, you will have a team of experts that help you to make strategic decisions and identify for you the potential deductions that are available to you throughout the year.
Avoid an Audit
This is also another compelling reason you should hire an accountant, especially if you want to avoid going through an audit. Most people only think of hiring an accountant after they are in financial trouble. Well, an accountant’s job is not to fix problems after they have happened but rather, an accountant is an expert that should help to identify problems and fix them before they occur.
Making Real-Time Decisions
By hiring an accounting firm, you will have a group of experts that will be at your disposal to help you budget and monitor your cash flow. By monitoring your cash flow steadily, you will easily navigate any hurdles that might come your way. You will also collaborate with your accountant and make decisions together based on real-time data.
Planning for the Future
This is one of the biggest benefits that your business will get when you hire an accountant. You will get expert advice on how you can plan for the future. Your accountant will pull past reports and examine them to determine the seasonality of your business. By doing this, you will be able to know the best time that you should budget for your big investments and when you should buy inventory.
This will enable your business to stay competitive with other similar businesses and be viable. As a business owner, you won’t have all the time to take a step back, and so you can look at the big picture. An accountant will, therefore, help you with coming up with strategies.