If you are a business owner, you probably know that in running a company, especially a new one, it is important to limit expenses to only what is essential for operations and what is needed for growth and expansion. For this reason, it is common for entrepreneurs to forgo spending on accountants and to instead take on that role themselves, primarily the bookkeeping.
Accounting for your own business may seem like an easy task, but it is one painstakingly meticulous process that is best done with expert hands. Though it may seem counter-intuitive to your desire to save money on expenses, especially on human resource, hiring an in-house accountant or even outsourcing accounting work is a great investment. Here are the reasons why spending a little more to hire a CPA is worth your money.
1. Saves You Money Preventing Mistakes Especially with Taxes
Accountants save you money! Accountants are well-versed with tax and business laws. This means that come tax season in April, your hired CPA will know what expenses should be listed as tax-deductible to ensure that you pay the least tax possible. Besides, CPAs are required to produce accurate papers and have been trained to make the correct calculations.
With a CPA, you are less likely to submit erroneous tax returns and financial statements. Submitting financial statements and filling your taxes with even a 10-peso discrepancy could cause you to incur penalties. In addition, you might get audited by the BIR and would have to repeat the entire accounting process once more, spending time, resources, and energy. The last thing you want as a business owner is to deal with Oplan Kandado because you’ve been red-flagged by BIR auditors for your sloppy tax returns.
2. Make Financial Predictions and Help with Plans
The accounting process does not stop at the preparation of financial statements. In addition to that, accountants are also trained to make financial predictions using previous financial statements and other data.
A CPA can help you forecast the financial state of your business in the future and can aid you in creating plans to prepare for such. If you have expansion goals, like opening a new branch or developing a new product, seeking their help to compute feasibility and profitability margins will help.
3. Give Advise Payroll Matters and Cash Flow Augmentation
In addition to preparing statements and data analysis, accountants are also skilled in making payroll plans. They may advise you on how to go about making payments to staff, how to assess employee performance, what proprietary bonus incentives to give based on sales output.
Moreover, your accountant can provide you with solutions on how to improve your cash flow. They will discuss how you can increase cash inflows and lessen cash outflows, which will help you build a bigger revolving fund for emergencies or expansion plans.
4. Conserves Time and Energy So You Can Focus on Other Endeavors
Above all else, a CPA is worth your investment because they save your time! Time is everything in both business and in life. Time is gold because it is a non-renewable resource that you can no longer get back. Instead of wasting time doing wrong calculations for your accounts which you will end up redoing, a CPA could do it all.
Best of all, they can do more computations of key performance indicators for you in half the time it takes you to finish one excel page. Investing in a reliable service will free up your hours and allow you to spend it working on other important aspects of your business or even spending time with people you love.
Final Wrap Up
A Certified Public Accountant is a profession in itself because accounting is a complex and time-consuming process. Outsourcing work to a reputable accountant will give you a great return on investment without having to pay the benefits of an in-house employee. There’s nothing to lose here! You save your money, time, and effort. More importantly, you keep your business alive and financially healthy. Even you remain healthy because you can offload the stress to a professional. Need help? Then give our team a call. We offer free 30-minute consultations to get you started on the right track.