5 Reasons Why You Should Hire an Accountant

Most business owners look for ways to increase profits, lower tax liability, drive more efficient growth, and find more time for life. Fortunately, you don’t have to look much farther than an accountant! Simply put, there are many reasons to hire an accountant, and the experts at MB Group have provided 5 reasons why you should hire an accountant:

1. To save time
2. To simplify your taxes
3. To have an expert on your side
4. To lower costs
5. To have confidence in your finances

Defining an Accountant’s Roles

An accountant is a financial professional who manages, analyzes and reports on business financial health. Accountants are responsible for preparing financial statements, such as balance sheets and income statements, which provide a comprehensive overview of a company's financial performance. They also ensure that the company complies with tax laws by preparing and filing tax returns. 

Additionally, accountants analyze financial data to provide insights that help guide strategic decisions, identify trends, and forecast future financial performance. Their expertise allows businesses to maintain accuracy in their financial records and adhere to regulatory requirements.

Accountant VS Bookkeeper

A bookkeeper is responsible for the day-to-day recording of financial transactions, such as sales, purchases, receipts, and payments. Bookkeepers maintain the general ledger, which is the core record of all financial transactions in a business. 

While accountants use the information provided by bookkeepers to generate financial reports and offer strategic advice, bookkeepers focus on ensuring that all financial data is accurately recorded and organized. Essentially, bookkeepers handle data entry, while accountants interpret and analyze that data to inform business decisions. Both roles are essential, but they operate at different levels of financial management.

Reason 1: To Save Time

Time is money — and both are necessary for your business to grow and develop. Without dedicating time to your business, it’s virtually impossible to succeed. And when you consider work-life balance, most business owners struggle to find enough time in the day.

However, when you partner with an accountant, you can remove a huge business management aspect off of your plate: finance. Accounting tasks that include bookkeeping, tax returns, establishing financial targets, recording receipts, and other simple responsibilities can all be shifted to a dedicated professional. This way, you can dedicate more time to growing your business, team building, spending time with your kids, playing rounds of golf — or all of the above.

Reason 2. To Simplify Your Taxes 

Tax returns are a complex thing that take time and effort to complete correctly. In fact, the most successful businesses don’t wait until tax season to begin preparing. They plan all year long. 

Key Takeaway - Tax returns should be managed year-round to minimize errors, ensure compliance, and optimize financial outcomes, reducing the stress of last-minute filing.

One of the top reasons to hire an accountant is that a professional can help you minimize your tax liability. In addition, your accountant can provide invaluable advice on purchases and decisions you make throughout the year that may or may not affect your tax liability. In the end, your accountant can help you slash your tax liability to free up funds that can be used to reinvest in your business or yourself.

Reason 3. To Have an Expert on Your Side

Hiring an accountant is a way to keep a solid grasp on your business finances at all times. By working with an accountant, you’ll have an expert set of eyes on your monthly reports, which can result in valuable financial insight. 

An experienced accountant will create valuable reports and provide interpretations to help you make better decisions. 

Key Takeaway - If you don’t measure it, you can’t manage it. 

When you work with an accountant, you are able to both measure and manage your finances seamlessly.

Reason 4. To Lower Costs

An accountant is much more likely to recognize unnecessary outflows of cash that you may miss as you look to grow your brand. For instance, an accountant can easily spot regular payments made to suppliers that you may no longer need to make.

These payments can easily be overlooked and simply accepted as an expenditure — but not by a dedicated accountant. An accountant will vigilantly watch cash inflows and outflows, ensuring you’re receiving what you are owed and not overpaying for unnecessary expenses.

Reason 5. To Have Confidence in Your Financials

Your ability to manage cash flows can either make or break your business. If you peel the layer of any healthy and successful business, you’ll find a business owner who has a steady hand on the cash-flow wheel. 

By partnering with an accountant, you'll be able to confidently answer some of the most critical cash flow questions that can dictate key business decisions. For instance, an accountant can use cash flow statements to help you answer:

1. Should you renegotiate payment terms with a vendor?
2. Did the change in your customer’s paying habits potentially signal a problem?
3. Why did your tax liability increase from last year?
4. What’s the best way to finance the new facility?

All of these answers are directly related to your cash flow picture and can be located in financial reports. Your accountant is there to help you plan ahead, maximize profitability, and avoid any unwelcome surprises.

Contact MB Group for Experienced Accountants

While there are countless reasons you should hire an accountant, one of the most understated reasons is peace of mind. By working with an accountant, you will take a lot of pressure and confusion off your plate. This way you can enjoy a greater peace of mind and spend more time on what truly matters - managing your business.

Reach out to The MB Group today to partner with experienced accountants that can save you time, simplify your taxes, lower your business costs and give you confidence in your finances.

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