Having a small business is great! It’s an exciting achievement as you revel in your status, work to achieve financial freedom, and boss it up unhinged. Amid the euphoria, you might be tempted to toss every business task on your shoulders—from the operational to the financial side of things.
What most small business owners fail to grasp is the hard truth that going at it alone is a remedy for disaster—unless you’re astonishingly good. According to the industry reports, more than 50% of small businesses close shop within 12 months—and 95% don’t get past their 5th year. Crazy, right? Considering there are nearly 31 million small businesses in the U.S. (according to the latest SBA report), this is a disheartening statistic for most business owners.
Some of the culprits behind the shocking small business failure rates are cash flow problems and a lack of proper financial management. Not to draw any association between the fail rates and the lack of a small business accountant—but it’s hard to ignore the key role these individuals (aka., me) play in keeping your house in order.
Here’s what you get by hiring an accountant for your small business.
- The Startup Process: A small business is only as good as its foundation. An accountant helps with this key business stage by chipping in on the most convenient and practical business structure, financial analysis of the business plan, ensuring accounting compliance with relevant regulations, offering advice on the best accounting software, and helping create an effective way to track expenses.
- Help Streamline Business Operations: Once the small business is up and running, an accountant can help you understand financial statements, oversee payment processes & payrolls, sort W2 & 1099 forms, compile/submit the necessary paperwork to the IRS for tax purposes, ensure all the accounting books check out, and identify excessive expenses.
- Facilitate Business Growth: Accounts are typically well-versed in anything financial. For this reason, they can be a valuable asset as your business grows. For example, they provide insights on business financing, pricing, inventory management, and cash flow patterns. They can also create financial forecasts to guide your decision making.
Long story short; rather than handle your finances yourself, I strongly suggest you get a qualified accountant instead. This is not even about advertising MossFinancials.
I understand the risk, stress, and sweat that goes into launching a small business—and I want to at least help overturn the failure statistic and save as many business owners as possible from the soul-sucking feeling that follows a failed business attempt (Yea, yea, I know…even ‘Pitbulls’ have a soft side).
The only way I can do this is by focusing on what I do best – accounting and offering knowledgeable financial advice. Schedule a call with me today and learn how I can help