Just like home owners believe they can be contractors to save money on their remodel, principles often choose to take the “I will save money” DIY approach with their company’s financials. While it may be difficult to avoid the temptation to do this, financial experts warn against taking money matters into your own hands.
Having an accounting team manage your finances early on and stay a step ahead with financial risks and opportunities, allows you to focus on growing your business. As @johnrampton advises in his blog on reasons to spend more time with your accountant: “An experienced accountant can offer business advice from projecting costs on upcoming deals to investments that you should be looking into to add value to your business when the time is right.”
Accountants free you up and reduce risk. While it may seem like handling your business’ finances yourself will lower your costs, the expertise that a professional can provide may save you money in taxes and avoid legal fees-- this service alone pays for itself in the form of tax returns. While money can allow for exponential growth, your time as a business owner is extremely precious. As an entrepreneur, the cost of investing your time into educating yourself in a field where you can be legally fined for a mistake is increasingly high. The federal document covering the tax code is 73,954 pages long, yet every business in the United States is expected to comply with the laws listed which continue to get more numerous and more complicated. Proof of that is shown in the ever increasing page count which is up from 67,204 since 2007. Think of all the ways you can grow your business in the time it would take to learn the tax code, keep up with the changes, and apply them to your company.
The goal of a professional accountant or accounting team is not only to give you financial freedom, but to reduce risks and allow the CEO to spend more time on strategic business matters. Your accountant will not only protect what you have monetarily, but help you expand.
Rely on experts for better decision making. Outsourcing financial expertise or establishing a finance team from the beginning will help your company more efficiently achieve goals. Although typically accountants are expected to manage finances, they frequently provide advisory services which can be crucial in a startup’s planning stages. An accountant can be instrumental in helping determine a number of crucial decisions for a new company early on. These can include but are not limited to:
- Which type of corporate structure to choose
- Financial planning & analysis (FP&A)
- Compliance with tax law
- Budget development
- Managing payroll
- Asset Management
Without all this firmly in place from the beginning, a startup can spend precious time and resources spinning its wheels.
Deciding how to spend your money is a daily reality in the lives of startups and small business owners. But investing in your own business' growth by relying on experts is just smart business. Escalon provides a variety of outsourced financial services customized to the needs of your business at each stage of growth. Talk to us so you can focus on your professional dreams.
Photo credit: 5 Reasons You Should Spend More Time With Your Accountant, INC. Magazine and small business accounting report by Wasp Barcode Technologies