According to a recent survey, the owners of startup businesses are more likely than the owners of established businesses to enlist mentors or coaches. On the other hand, established business owners were more likely to rely on the services of accountants, bankers, and lawyers as opposed to their younger counterparts.
Considering the number of new businesses that fail within the first year of business and the challenges entrepreneurs face on an everyday basis, it is clear that we must help startup businesses comprehend the important of working with committed professionals. Does an accountant cost money? Yes, and it is one of the largest reasons thwarting entrepreneurs from searching for the services of a professional accountant, but new businesses should deem the services they hire as an investment, not as an expense.
An accountant’s capacity of work does not cease with tax preparation. In fact, accountants can and should be a year round business partner that can lend expertise and perspective in your industry in order to help your business grow and navigate through an uncertain economy.
Below you will find nine reasons why all entrepreneurs should work with an accountant.
1.) Focus on why you started your business.
Entrepreneurs are passionate, as evidenced by the reality that more than half of small business owners surveyed went from business idea to opening in less than six months. With such rapid
growth, business owners cannot afford to get tied down with tasks that do not help their business to continue to grow. Accountants are one way of alleviating this burden, as they take on the heavy lifting of many different aspects of the business.
2.) Find a work-like balance.
Despite how new or how established a business is, many business owners struggle with finding the right balance between work and having a life. In fact, maintaining a balance was actually the largest challenge for startup business owners. Accountants can take on the tasks that you are not looking forward to handling. Thus, this in turn frees up your time to sell, market and grow during the day, and/or maybe even spend time with your family.
3.) A professional reputation.
A good accountant will represent you and your company in the best possible way. This is exceptionally imperative as new businesses strive to create strong relationships with key participants in their success, such as the bank.
4.) It is important to a company’s success.
As reported by the Sage survey, more established business owners report working with an accountant and these business owners agree that working with an accountant is a essential factor of their success.
5.) A new perspective.
Frequently, entrepreneurs are so involved in running the day-to-day operations of their business that they may not be able to see the whole picture. In other words, someone who is removed form the business can provide a different perspective that may otherwise be missed. Meeting with an accountant can be similar to taking a step back, looking at the bigger picture, and gaining a fresh, new perspective. Often times that is all it takes to come up with the next big idea.
6.) They have reach.
Do not underestimate how valuable it is to receive guidance from someone who has insight and knowledge regarding hundreds of businesses and industries. Accountants not only get access to the financial information of many businesses across various industries, but they also have an understanding into the best practices that are working for other businesses as well as the mistakes others have made that have led to failure. Being able to have this insight and share information on what has or has not worked for others in priceless. Why reinvent the wheel if you do not have to?
7.) Businesses need a plan.
One reason thousands of businesses fail every year is because they did not have a plan. When asked why, they said, “I just did not know where to start.” This is where an accountant comes in. A good accountant will partner with a business to analyze all the data and help build a road map to success. Poor planning is not necessary, and bringing a professional on board can help small businesses plan for success.
8.) They understand tax.
This may seem obvious, but keep in mind that rules and regulations change frequently, and it is difficult if not impossible for any business owner to keep up with all of these changes. Twenty nine percent of small business owners admitted that accounting and bookkeeping is one of their biggest challenges. An accounting professional can take away your uncertainty and ensure that your business stays compliant.
9.) Analyze data for growth and profitability opportunities.
If all of your data is just sitting in a database and you are not analyzing, interpreting, or using it to help drive your business direction and decisions, then you are missing out on a great opportunity. Have an accountant help you dive into the numbers and use them to boost greater business growth and profitability in the future. A great way to do this is through online collaboration in a small business account solution where accountants have visibility into clients’ accurate financial data at any given moment.This entry was posted in Uncategorized. Bookmark the permalink.
W.A. Campion Co., P.C. is more than the typical accounting firm. While we do provide traditional tax preparation and accounting services in Minneapolis, we also offer other business advisory and financial services to our clients helping them with the financial decisions crucial to the success of their businesses.