Posted on: 19 October 2017
If you own a small business, but you haven't hired an accountant, you could be setting yourself up for some serious problems. First, you've got too much on your plate to try taking care of the financial records. Second, if you're handling your own finances, that means you're also handling your own taxes, which can be detrimental. Here are three reasons why you need have an accountant for your business.
You're Worried About an Audit
If you've never been audited before, chances are good that your turn will come up soon. Most small businesses can expect to get audited at least once, especially if certain circumstances apply. Some of those circumstances include cash transactions, home office deductions, and financial losses. If your business is audited, and you've been handling your own taxes, you could be setting yourself up for problems. This is particularly true if you're unable to explain how you came up with your tax calculations. Hiring an accountant will ensure that your taxes are doing accurately, and that you'll have a professional who's able to sit down and explain the calculations.
You're Applying for a Business Loan
If you're trying to apply for a business loan, you know how to difficult the process can be. Most lenders require extensive paperwork before they'll even consider small business loans. Some of the paperwork they'll require will include past tax records, and financial records. In most cases, they'll require several years worth of those documents. If you've been handling your own business finances and taxes, you may not have the records your lender will require. Mistakes, or missing documents, can hinder your ability to receive the loan you need. That's why you need an accountant. Your accountant will ensure that your records are complete, and that your records go far enough back to help you qualify for your loan.
You're Missing Out on Important Deductions
If you're filing your own taxes, you might be missing out on important deductions. Unfortunately, missing out on deductions could end up costing you additional money on your taxes. When you run a business, you need to save money wherever you can find it, including on your taxes. An accountant will ensure that you receive all the deductions you're entitled to.
Don't take chances with the financial stability of your small business. If you're not using an accountant for your taxes, and your financial records, you need to start. They'll help you save money, and ensure that your taxes are accurate. For more information, contact companies like Andrea Lawrence Tax Accountant Inc.Share