4 Important Reasons Your New Business Needs Accounting Services
By Gloria Martinez
As a new business owner, you have many concerns, not the least of which is making good financial decisions for your company. It may be tempting to try to save money by doing your own bookkeeping, but that can be riskier than you think. Partnering with an accounting and payroll services firm can ultimately save you money by helping you make better decisions, avoid costly mistakes, and protect your business from government audits and fines. Here are four important reasons why.
1. Accuracy
A recent study by Intuit found that, though 40% of small business owners classified themselves as "financially illiterate," more than 80% say they handle their business's finances themselves. That may not be surprising, but it should be concerning. With all the responsibilities and decision-making that comes with ownership, it's no wonder that bookkeeping accuracy often suffers due to a lack of time, focus, and knowledge.
An accountant's time and skills are focused solely on keeping records, balancing sheets and budgets, preparing reports, and organizing it all so you can use the information to make better decisions for your business. The accuracy of all those numbers is critical to the life and health of your company — on a day-to-day basis, at each financial quarter, and at tax time.
2. Organization
Reliable professional accountants are highly organized and make good use of software and tools to keep your records correctly labeled, categorized and easily accessible. They are experts in tracking expenses and income and, in smaller companies, can manage payroll. Larger companies often separate these roles, though even smaller companies can benefit from working with a dedicated payroll service as well as an accountant.
Besides processing payroll and paying your employees, an online payroll for startup service can handle more complicated aspects, such as managing benefit packages and withholdings, making tax payments to authorities, and ensuring the accuracy of payroll taxes. To make filling out forms and paying your employees simpler and more efficient, pay it forward with reliable payroll. Payroll services for startups often offer direct deposits, so paychecks immediately go into your employees’ bank accounts. Overall, they reduce any human error involved in the process and make for happier employees and less hassle.
3. Compliance
Both payroll services and accounting services help a business maintain compliance with the government, which is necessary to protect you and your company. Compliance requires specific knowledge you may not have; even if you choose to do your own bookkeeping, you should rely on experts when it comes to tax regulations, which are constantly changing.
There are specific deadlines for submitting the various tax-related forms integral to most businesses. Making sure your company's financial records and procedures are compliant with state and federal regulations is complicated and time-consuming, and therefore not an area you should attempt to handle yourself as a business owner.
4. Growth
At any stage, but particularly when you are just starting, accounting services can offer advice and perspectives to help your company grow in many areas:
Create a business budget
Show your business's financial forecast
Identify patterns in cash flow
Provide insight into pricing
Prepare you in case of an audit
Protect you from being audited
Safeguard your business's finances and financial outlook by working with an accounting service with a proven record of professionalism, integrity, and excellence. Research firms active in your area to find the right fit for your new company. Starting off right by keeping accurate and organized records, as well as following all regulatory protocols, gives your business the best chance of success as you go forward.
Meet the Writer
Gloria Martinez loves sharing her business expertise and hopes to inspire other women to start their own businesses and seek promotions in the workplace. She created WomenLed.org to spotlight and celebrate women’s achievements.
