Financing Your First Business

Why Your Small Business Could Use The Help Of An Accounting Service

3 March 2019

Jimmie Holland

When you operate a small business, even if you have no employees, you may need help with accounting and taxes. You want to avoid problems with the IRS, and accounting practices and tax laws can be difficult to understand. Getting professional help is often the best solution and a good use of your money. Here's how a small business accounting service can help you.

Frees Up Your Time

Running a business by yourself can be overwhelming and exhausting while you're devoting time and resources to make it grow. Growth is good, but it can consume most of your time. If you need to spend hours each week or month going over your books, then you'll have less time to spend on the business itself. When you hire an accounting service to reconcile your books and keep track of your income and expenses, you're free to devote your time to other things.

Helps You Understand Expenses

You'll want to follow reports from the service so you can keep up with your profits and always know how well your company is doing and where you need to save money. Your accountant will prepare a variety of reports for you that show you where every penny came from that you earned and where every penny was spent. This information is important to know and it can be obtained in a way that's easy to understand when your accountant provides you with digital reports that you can manipulate and view in graph and text form. Information like this helps you cut out waste and focus your efforts in the right area to bring in more money.

Helps With Taxes

The main reason to use an accounting service is for help with taxes. The accountant prepares quarterly tax reports so you can pay taxes on time and avoid penalties. An accountant can also help you get the deductions you need so you don't have to pay more taxes than you have to. Your accountant also understands how to avoid IRS audit triggers, but if you are selected for an audit, your accountant can help you through the process if necessary. Tax laws change fairly often and they're usually difficult to understand. If you don't want to learn the laws and keep up with them, you need an accountant to make sure your taxes are filed properly. This helps you avoid bills for back taxes and IRS fines.

While an accountant is helpful for your small business, there are still things you must do yourself such as keep track of expenses and receipts. This is often easy to do with digital receipts, and it makes it easy to transfer the data to your accountant. Establish a habit of saving receipts for every purchase you make and keep track of all income you receive so your accountant can do the best job of keeping your books and figuring out your taxes.

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