Startups are lean by nature. They’re small staffed, often just a person or two, with those people typically wearing more than one hat. Certain luxuries are passed over. There isn’t room for wants. Only needs.
Deciding which is which isn’t always easy, but it’s imperative to starting a new business.
One area new businesses are often on the fence with is accounting. Do they need an accountant? Or do they just want somebody to handle their money for them.
We’re going to save you some time here and let you know, as a new business, professional accounting is a need.
And as a startup, you need to make every dollar count. Just one or two miscalculations could spell the end for your new company. We’re not saying you need to hire an accountant internally. That wouldn’t make much sense.
Rather, you should outsource your accounting to professional. Here’s why:
An Accountant Provides Accountability and an Outside Perspective
As an entrepreneur, you’ll often be so wrapped up in your business that you might not be able to see things clearly. Or at least, from an overhead viewpoint. This is very important when making financial or market related decisions.
Asking a friend or business mentor for guidance might result in feedback that’s too optimistic or too far removed.
An accountant, however, provides an honest answer based solely on facts and figures. They won’t always tell you what you want to hear, but they will tell you the truth. From there, it’s your choice.
It Allows You To Focus On What You’re Good At
While wearing multiple hats can be an important part of getting through the startup phase, it reaches a point where you’re too thinly spread. You stop doing what you’re good at, and the company suffers for it.
People who aren’t naturally good with numbers and calculations take a lot of time to do accounting. Too much time. Time that you cannot afford as a startup.
An accountant takes minimal time to achieve a better end result, leaving you to focus on your strengths.
You Know Where You Stand
Having a professional accountant on hand means your records, numbers, cashflow, and other financial information will be up-to-date and properly organized. That means at any time, you know where you stand financially.
This allows you to make better decision while minimizing risk.
Taxes are Complicated, Especially for Businesses
Having an accountant makes your taxes much easier to handle. For a business especially, taxes are very complex, with many rules, exceptions, deductions, and more. With an accountant, your records will be organized and easy to follow.
They can assist you with finding all the appropriate records, and most likely, they provide some form of tax services that you can utilize.
So, as you can see, having an accountant shouldn’t be considered a want. It is something virtually every startup needs if they want to be successful.
At LWS Tax, we provide a full-range of accounting services to meet your needs. From basic accounting to payroll services, Springfield, Ohio businesses know that they can trust their finances in our capable hands.
Contact us today, and get the accounting service you need.