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Does My Business Need Accounting Services?

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With very few exceptions, businesses need accounting services by their side. These services do so much more than balance books; they also reduce workload and provide valuable business forecasting. This is particularly important for startups and small businesses that are looking to grow. Here, we take a look at a few reasons why professional accounting services are crucial for your business’s success.


An accountant can help you file the right tax forms.


If you utilize a freelance or contract workforce, you likely file 1099s for your workers. However, it’s important to know the IRS has revamped the 1099 designations. Now when you efile 1099 forms, you must know the difference between whether to use the 1099-MISC or the 1099-NEC. The former is now specific to independent contractors who received more than $600 in compensation last year, while the latter only applies to non-compensation payments that are over $600. While your accountant can explain this further, it’s still a smart idea to familiarize yourself with these changes so you can file quickly and easily online through your payroll software. 


An independent CPA is cost-effective.


When money is in short supply, you can utilize a CPA instead of an in-house bookkeeper. This can be less expensive, particularly if you need the services of both a bookkeeper and accountant, which can set you back up to $150 per hour. An employee who works for you full-time requires a salary, benefits, and the expenses associated with onboarding. An independent provider does not. 


Your financial partner can help you manage sustainable growth.


Sustainable growth means only taking work you can handle so that you can continue to provide services to new clients without interrupting your workflow or causing problems for your current clients. An accountant can help you crunch the numbers and make better decisions when it comes to hiring new staff or acquiring new equipment as you expand. Further, they will help keep your books in order so that you know which clients are paying on time and which might cost you more in the long run due to missed payment deadlines.


Your accountant can help you stay compliant.


To adhere to small business best practices, you need to maintain flawless financial records, especially for expenses related to things like membership shares and interest transfers. Your accountant will keep a record of these and will be one of the few people who has access to your client payment information. This can help your customers feel more secure and can help you stay updated and compliant with financial privacy laws.


An accountant can help you with payroll. 


Your accountant can work with you to ensure that you have a streamlined payroll process. They might, for example, help you set up automatic payroll deposits for your employees. Your accountant can also periodically review your payment practices to help you determine if it’s more financially feasible to pay your employees weekly, biweekly, or monthly.


Perhaps the most important reason to enlist the services of a professional accounting firm is that it frees you up to focus on your business. This is crucial if crunching numbers isn’t your forte. The way that you handle your business finances can significantly affect your profits. For this and the reasons listed above, it makes sense to have a financial partner on your side at all times.