There are many reasons to hire an accountant for both personal or business purposes. From a business perspective it makes sense to hire a professional accountant as it is necessary for your business survival. As a business owner, if you simply take revenue into your bank account then when bills or expenses need to be paid just take the funds out you will never know if your business is doing well. If for no other reason, keeping accurate records will make it easier when tax time comes around.
Many owners of small businesses or freelancers choose to try and do their own accounting or bookkeeping. Unless you have a background in accounting it may not be the best plan. Things to consider when deciding on whether you should hire an accountant:
How much time are you willing to spend on maintaining your accounting records? Well maintained records require regular updates. Deciding whether your time is better spent on your business or on your accounting needs will help you decide if you require an accountant.
Do you understand basic accounting principles? Cash and accrual accounting are different methods of recognizing when revenue and expenses are accounted for. Do you know which one is best for your business? Will you receive the best tax advantages at the end of the year? Can you keep your accounts balanced? If you are struggling with any of these things, it may be best to bring in a professional who will make sure that your business is running smoothly.
If you have dutifully kept track of your revenue and expenses and can provide detailed financial statements do you know how to use them to effectively to help your business prosper? Financial statements serve many purposes. Making use of the information that accurate and up to date accounting provides is important for setting a budget, predicting trends and setting goals. A professional accountant will be able to use your financial statements to help you determine where your business is headed.
Hiring a professional accountant has its advantages. One of the biggest benefits includes being prepared when tax time rolls around. An accountant will help you recognize problems before they have an impact on your business and will help you resolve them. They will be educated on current tax laws and will ensure you claim all deductions available.
Jim Walker has over 30 years of professional accounting experience. By hiring him you bring all of his experience to your business. Call (905) 272-4000 today to set up your free initial consultation.