Growing Your Business

Why Is It So Important To Choose A Top Local Accountant?

by
Lee Reams II
on
9/17/2015
Why Is It So Important To Choose A Top Local Accountant?

Bad Accounting Leads To Business Failure

There's a cold, hard truth about entrepreneurship that most small business owners don't want to acknowledge. It's this:

The vast majority of new businesses fail within their first five years.

Young businesses, bursting with energy and enthusiasm, invariably run into their first major roadblock within that time span. And according to the Bureau of Labor Statistics, most of them fold or collapse when it happens.

If you're a business owner, you need to understand why these businesses fail, so that you can avoid the same pitfalls yourself and get over the hump.

And while there are an effectively infinite number of challenges that young businesses face, they only ever fail for one reason: they run out of money. Working with skilled professional accountants is one of the best ways to avoid this fate.

Bad Bookkeeping Is More Expensive Than Good Bookkeeping

Is accounting a revenue stream? In a word: no. Keeping the books doesn't bring in new customers, or develop relationships with existing ones. It doesn't create new products or market existing ones. It doesn't build brand loyalty or add value to the end product.

Because of this, business owners are often tempted to do their accounting on the cheap, relying on friends or family members to keep the books "whenever they have a chance."

Don't do this. It's a death sentence for your business.

Why? Because when you're making decisions about strategy and product development, it's vital to have a clear picture of your business's financial health. Bad data leads to bad decisions--like launching a new product when you don't have enough money to bring it to market, or sticking with a price point that's silently bankrupting you.

Not only that, accounting errors when filing taxes mean expensive penalties and over payments. In the end, bad bookkeeping is going to cost you much more than a professional accountant will.

Come Tax Season, Local Expertise Is Worth Its Weight In Gold

Federal regulations are the same across the country, but there's a lot more to tax law than the Federal level. There's also state, county, city, township, and potentially other municipalities to worry about--and while it can feel easy to slip through the cracks of the massive federal bureaucracy, local government is more likely to pay attention to your return.

Local accountants are always going to be more familiar with the ins and outs of local tax law than big, national firms.

Does your city offer an obscure tax credit to businesses within your industry? Are you located within a special development zone, or a renaissance district? Does your state have special cutoffs for businesses with a certain number of employees? A good local tax accountant will know these things, and the more familiar they are with the law the more money they'll save you.

Your Time Is More Valuable Elsewhere

One of the most common mistakes that new business owners make is trying to do everything themselves.

"If I take care of it, I don't have to hire someone else to do it, and that way I can save money," goes the reasoning. Unfortunately, the reasoning is wrong.

Unless you've started a tax accounting business, you're probably better at the actual work of your business than you are at accounting. Sure, you can do the accounting yourself, but it will take you longer than a professional and you're more likely to make mistakes. 

How much more money could you make if you spent that time on the actual work of your business, rather than accounting? That's the true cost of doing it yourself instead of working with a professional.

Convinced, than work with the best!

The following TaxBuzz Verified Accounting Professionals excel at making more time for business owners to do what they love doing. They have passed a background screening and their client reviews are testament to their skill and expertise. Feel free to reach out to discuss how they can help your business reach new goals. 

Plano, TX: Bill Karraker, CPA

St. Petersburg, FL: National Income Tax & Accounting

Cincinnati: Jason Feist

Fredericksburg, VA: Musheerah "Shalom" Kolen

Salt Lake City: Ken Riter, CPA

Harlingen, TX: Chris Villarreal, CPA

Orlando: Sonu Shuka, CPA

Lake Charles: Jeff Mathews CPA

share this post
Search for matches...
Lee Reams II

Lee Reams II

CEO

I am a tax and business news junkie who has spent the last 20 years developing and executing "best in class" word-of-mouth marketing campaigns for tax and accounting professionals. With TaxBuzz and CountingWorks we have taken that same commitment to quality content directly to the consumer. Keeping you up-to-date with the latest tax law changes, business growth tips and planning strategies to help you reach your best financial outcome.

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

Need help selecting a firm?

Use our specialized search engine and get matched to the best accounting and tax firm for your needs.

Related Posts

Latest Posts