5 Reasons Why You Might Need an Accountant.

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(ThyBlackMan.com) Whether you run a clothing e-commerce store, design websites, or develop addicting smartphone games and applications, running your own business can be challenging no matter your trade. Because of this, being able to rely on a good accountant can often mean the difference between long-term business growth and sustainability, and bankruptcy and other financial hardship. No matter what kind of work you do, here are five important reasons to hire an accountant if you work for yourself.

Reason #1. Save Time:

You might have considered doing your own accounting in order to save money, but the truth of the matter is that it can be a very time-consuming process. There’s more to business accounting than simply submitting an online tax return; you’ll need to prepare your files on a regular basis, keep records, and make sure that your company is compliant with tax laws and regulations. In fact, studies show that spending just one hour each day on bookkeeping can lead to wasting six whole weeks of your year that could be spent on other important business processes such as building lasting relationships with your customers and improving your online reputation.

Reason #2. Avoid Mistakes:

It’s important to bear in mind that most entrepreneurs aren’t experts in accounting at all. No matter how much business experience you have, never assume that bookkeeping is going to come easy to you. Attempting to do your own accounts could lead to making some very costly and risky mistakes further down the line if you’ve had no prior experience. Instead, trust an experienced accountant to get the job done for you.

Reason #3. Take Advantage of Tax Savings:

Running your own business can become a large financial burden, so it’s vital that you’re able to take advantage of any critical tax savings that you may be entitled to. There are several tax relief options, deductions, discounts and savings available to hardworking business owners. Trying to identify the ones that you qualify for and figuring out how to apply for them can be a challenging and time-consuming process. Reach out to an accountant who’ll be able to smooth out the process for you.

Reason #4. Avoid Tax Fraud:

Tax fraud is becoming an increasingly more common issue today, with scammers claiming billions of dollars per year from unsuspecting business owners using tax refund schemes and other illegal phishing tactics. When you use the services of an experienced accountant, you can rest assured that all your business filings will be handled correctly and submitted on time, reducing your risk of falling victim to fraud. Your accountant will also be trained and equipped to notice the early signs of fraud.

Reason #5. Pass Tax Audits:

Whilst there’s no reason for you to fail a tax audit if you’ve been handling your taxes correctly, dealing with one all by yourself can be a daunting experience. Owning a business immediately increases your chance of getting a dreaded ‘audit’ notice, with sole proprietors receiving the most. Maintaining a formal business entity and using a reputable accountant can reduce your chances of getting audited.

These are just some of the reasons why every business owner needs a good accountant. If you have more that you’d like to share, let us know in the comments.

Staff Writer; Terry Brown