Starting a Small Business

How an Accountant Can Help Grow Your Small Business

How an Accountant Can Help Grow Your Small Business

It’s easy to think you don’t need an accountant. It’s even easier to believe that not having a professional managing your books is going to save you money. Unfortunately, this is perhaps one of the worst steps any small to medium business can take when it comes to managing their company’s financing, creating short-term and long-term financial success, and building stability.

What’s the Real Benefit? 

It comes down to understanding what the real benefit is to having these individuals on the team. Consider these key benefits. 

Turn Numbers Into Information

You can create a simple spreadsheet to organize your expenses and revenue. Even those who are the most talented at these sheets can get some good information from an accountant, though. That’s because these professionals turn numbers into actionable information:

  • Pinpoint specific areas of loss. Perhaps you lost money in a marketing campaign. Now you know where to advertise and where not to. You gain insight into what works and what does not.
  • Find out not just that you are profitable, but what is your key source of revenue.
  • Determine what type of expense can be cut based on the return on investment that it’s actually providing to you.

It’s this insight that can keep your business financially on track and growing. Otherwise, you would have to guess at this information.

Reduce Costs Related to Fines

Millions of dollars are lost by small to medium businesses in terms of taxation. This happens in several ways:

  • You’re fined because you didn’t report or submit your quarterly taxes properly.
  • You miss key reductions in taxes such as credits you qualify for.
  • You fail to meet deadlines required by the IRS, increasing penalties. 

By avoiding these mistakes, you save money. Those dollars can be put into your profit margins or reinvested in your company to help it grow even faster.

You Minimize Legal Ramifications

Establishing your business and legally setting it up helps to reduce many of the liability risks companies face. For example, perhaps you just opened a retail outlet. You love your job, and it is turning a profit. Then, a customer falls. Your liability insurance isn’t enough, and because you haven’t properly established a business entity for your company, your customer is going after your home and other assets to recoup their losses. Proper establishment of business legal formation is essential to avoiding risks, reducing costs, and ensuring the best profit margins.

There’s the Time Factor, Too

Where is your time best spent behind a desk: Trying to calculate returns or working hand-in-hand with your employees and clients? Look at your time in terms of ROI. Are you getting the most from it by handling your books and accounting on your own?

Gain New Prospective

It’s somewhat common for business owners to see their company in one of two lights:

  • Your company is thriving, you’re earning money, and it is doing well financially.
  • Your company isn’t making enough because you aren’t getting more customers in the door. You’re worried.

When you work with a professional, you gain better insight into what’s really happening. And, your accountant can also offer better perspective on what you can do to improve your bottom line even more. Now, you’re learning how to do even better.

Better, Real-Time Access to Information 

Business owners love information. Data gives you direction and helps fuel your company’s growth. With accounting tools at the ready, you can get real-time access. How were sales this morning compared to last year? What is it costing you to offer this product at today’s prices? This real-time information can be empowering.

Gain insight into the way your business operates by employing the help of an experienced accountant. In doing so, you may be able to grow your profits faster and even achieve a higher level of return without any added frustration.

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Sherri Hastings

Sherri Hastings

Tim Murphy is the managing member at Murphy & Murphy, CPA, LLC, a full-service certified public accounting firm, with emphasis on tax preparation, audits of governmental, educational, and non-profit entities, retirement planning, estate planning, business valuations, litigation support, and banking. He is a Certified Public Accountant in Maryland and Virginia. Tim is also a CERTIFIED FINANCIAL PLANNER professional, Personal Financial Specialist, Accredited Estate Planner, Certified Valuation Analyst, and Investment Adviser Representative.

MURPHY & MURPHY, CPA, LLC.
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