One way is by identifying tax planning opportunities and helping the business to take advantage of them. This may involve identifying tax deductions and credits the business is eligible for or recommending strategies to structure the business to minimize tax liability. Project accountants typically work closely with project managers and other team members to ensure that the financial aspects of the project are properly managed and that the project is completed successfully. They may also coordinate with other financial professionals, such as auditors and controllers, to ensure that the project’s financial information is accurate and complete. Auditors typically review an organization’s financial statements and supporting documentation, such as bank statements and invoices, to ensure that they are complete and accurate.
How much should I pay an accountant for my small business?
Small-business accountants range in price, depending on a number of factors. The Bureau of Labor Statistics estimates in-house accountants make an average annual salary of $70,000. If you’re outsourcing to a contractor or accounting firm, costs vary from a few hundred dollars per month to thousands per month, depending on your needs.
Hourly fees for bookkeeping services can run $50 per hour and up. Recording your income and expenses isn’t a difficult task (you don’t need an accounting background or to be “good with numbers”), but it does take time and effort. You can hire an expert to do it all, do it yourself or combine the two, using an expert to help you from time to time. A certified public accountant is more expensive than hiring an accountant who is not certified.
How an Accountant Can Help a Small Business Owner
On top of consulting everyday financial decisions, your accountant can also help you shape the future of your business, Martin says. This includes making plans for succession if you’re looking to pass your business down to the next generation of family members or to employees. “These strategies help clients make sure that a greater percentage of their assets go toward organizations that provide social good.” Having a accountant who understands your financial position can help you present the purpose of the loan and consider various options for financing. However, accountants can also help you get a loan, review documents, help with estate and succession planning, and even serve as a virtual CFO. Much like with expense tracking, there are accounting tools that can help you manage your bookkeeping.
Here are six reasons why any professional can benefit from understanding financial accounting. Harvard Business School Online’s Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills. If you’ve been in business for a while, your accountant could give your bookkeeping procedures and records a one-time or periodic checkup. If you collect sales tax from your customers, good records will make it easy for you to compute the tax due and prepare the required reports.
Are you ready to hire an accountant?
Duffy, a musician whose bachelor’s degree is in ethnomusicology, grew up much more focused on art and social justice than business. She pursued an MBA in accounting with a goal of bringing business skills back to the NFP world. Manage labor costs and compliance with easy time & attendance tools. For advanced capabilities, workforce management adds optimized scheduling, labor forecasting/budgeting, attendance policy, leave case management and more. Explore our full range of payroll and HR services, products, integrations and apps for businesses of all sizes and industries.
One-fourth of small businesses are only “somewhat confident” in their tax preparation skills. Although hiring an accountant is optional, it can be a big help to have one when it comes to reviewing financial records and filing taxes. The advice that an experienced business accountant has to offer your company might just be the difference between success and failure, and their expertise can help guide your decisions as your business grows. An accountant can advise financial management, such as developing budgeting plans and forecasting financial performance. In addition, an accountant can advise on compliance with financial regulations and laws, such as tax laws or reporting requirements.
Frequently Asked Questions
Small, midsized or large, your business has unique needs, from technology to support and everything in between. Focus on what matters most by outsourcing payroll and HR tasks, or join our PEO. No matter how skilled and savvy your accountant is, she can only be as good as the information she gets from you. Help her to be even better by asking for specific ways you can equip her with information. Our easy online application is free, and no special documentation is required.
This how an accountant can help your business helps you create a monthly budget and monitor your finances. For an added monthly cost you can use a bill-paying system to automate your payments so you’ll always be on time and pay the right amount. Nothing beats a recommendation from someone you respect and trust so ask friends, family and business partners what they think of their accountants. We’ve compiled a list of progressive accountants that offer a wide range of services and understand the power of business software. If you own a business, you know your company’s success hinges on hiring the right people at the right time.