Any business needs quality support. Big businesses can afford to have that support permanently on the payroll. After all, they need those skills all the time.
Small business can’t afford that luxury. However, it is still important to surround yourself with good people who have the skills you lack. And one of the most important is an account.
Keeping Things in Order
For any business it is crucial to keep an eye on the day to day financial position. This includes your business. Good financial advice is one of the foundations of making your working from home enterprise.
A qualified accountant is the best way to make sure your books are in order. They will help you set up systems to keep track of all things monetary and make sure nothing goes missing. This keeps you focused on the unique skills that make your business successful without having to worry about the financial side.
Keeping your accountant in the loop will also help with any paperwork you have to do, such as taxes, both state and federal, and regulatory filings (if your state and company structure require them). They’ll know the best way to maximize your tax returns, especially for hard to determine expenses like your home office. This not only offsets the cost, but makes sure you’re safe from penalties arising as the result of bad claims or missed filings.
Not only can an accountant help you with the current state of your finances, but the right accountant can help you look ahead. Your business plan does not just happen by itself. It takes resources. This is where your accountant can help.
An accountant can look at your business plan and determine what financial resources – capital, cash flow or revenue – you need at each stage of your plan. They’ll help figure out the best way to get into the right position for each stage of your plan. For example, what level of sales will you need? Or will you need a loan? Do you need to reinvest in the business or should profits be paid out in dividends?
Your accountant can study the alternatives and select the best way forward, taking into account things like tax implications, and anything unique to your circumstances.