How Small Business Owners Benefit from Professional Accounting Services

2 people sitting at table with laptop viewing whiteboard screen

Getting a new business off the ground takes a lot of hard work. If you are in the process of launching a small business, you know you need to be free to invest your mental energy in the many demands your project makes of you. From networking with potential clients to creating a marketing plan, you are multitasking every step of the way. And while you’ve already done the work of educating yourself on the ins and outs of business management, trying to navigate the complex world of taxes and other financial matters can be daunting.

Even if you are adept at accounting, some of the details of tax law can be difficult to get a handle on. If you’re not already working with professional accounting services, here are some reasons to consider doing so.

An accountant will save you from expensive mistakes.

Even the most well-intentioned business owner can easily make a misstep when trying to keep up with taxes. And a mistake in this area can’t always be repaired easily — tax errors tend to snowball into greater problems and lead to delays, penalties, and fines. There are numerous areas where absolute attention to detail is necessary. Otherwise, you may end up miscalculating taxes, missing deadlines, or even mixing up your personal and business finances.

As a business owner, accounting is only one part of the operation you’re managing. Whereas for a professional accountant, it’s all they do, so they can give your taxes the full attention they deserve.

Accounting services help with more than taxes.

In addition to making taxes a priority, you also need to stay on top of payroll, which can be especially challenging for those new to entrepreneurship. A same-day payroll direct deposit service can simplify the process here since all you’ll need to do is create a payment schedule, enter your employees’ hours, and send it out so your staff receives their compensation on time. Plus, implementing direct deposit eliminates issues like forgetting a pay date or dealing with lost checks or clerical errors.

A professional accountant can make recommendations to simplify your payroll and employee benefits. They can also handle the tasks of managing your payroll scheduling and handling any issues that may come up.

Accounting services can help you plan for your company’s future.

You’ve got a vision for the future of your business. When it comes to expanding your customer base, investing in your employees, and broadening your marketing reach, you likely have a fairly good blueprint for how to make your vision a reality. But maintaining pristine financial records needs to be part of this plan.

Again, an accountant can help you with this. An accounting expert will be able to assess your records and help you set budgets, as well as determine the most optimal schedule for investing in products or launching new initiatives. 

If you’re debating whether to forgo accounting services to save on expenses, remember that not having an accountant has the potential to be far more expensive in the worst-case scenario. Keep in mind, too, that the time and energy you’ll save by handing your accounts over to a professional will allow you to focus on the work of guiding your new business on the path to success.

Let Us Crunch the Numbers

Crunch Consulting offers one-on-one support for small business owners. We can handle your taxes, payroll, financial reporting, and more. Find out what we can do for you and your small business today. Call +1-888-91-CRUNCH for personalized service.

How to Expand Your Small Business In 2021

5 people cheering on 1 person climbing an up arrow with a flag

According to the Small Business Administration (SBA), there are approximately 30.2 million small businesses in the United States. If you are a small business owner, you firmly understand the challenges and rewards that come from being an entrepreneur.

One of the biggest milestones for all small business owners is reaching the point where you need to expand. Whether that means opening a new location, hiring your first staff members, or broadening your service offerings, you should be proud of your achievement.

As you prepare to expand, there are new and important things for you to think about.

Create standard operating procedures (SOPs)

If you’re the type to carry information about your business around in your head but never write it down, you aren’t alone. When working as a team of one, or with a small team of freelancers or even family members, you can get away without having standard operating procedures (SOPs).

If you are expanding your business, it is finally time to create critical SOPs.

SOPs serve as guided instructions that explain how to perform various tasks. This can include everything from instructions on how to clean equipment, complete a specific computer-related task, or reach out to clients.

If you’re unsure about which SOPs to create, consider which tasks are critical to the operation of your business. In your absence, what instructions are important to have written out so that someone could step in for you? Also, if you plan on training staff to handle certain tasks in the near future, write out SOPs for each one.

Establish a separate bank account/credit card

If you haven’t done it yet, your small business expansion may require you to establish a separate bank account and credit card. According to Forbes, there are many advantages here. Not only do separate accounts make it easier to track business expenses, but they also simplify your taxes, enhance your credibility, and pave the way for additional growth.

Consider forming an LLC

Another important consideration at this stage is whether to formalize a business structure. The formation of an LLC (limited liability company), for example, is one of the easiest choices available for U.S.-based businesses and provides a host of benefits.

Although there are initial time and financial investments, this process can save you significant time, stress, and hardship down the road. In the simplest of terms, forming an LLC ensures that you’re not personally responsible for your organization’s debts. You can also enjoy certain tax advantages, reduced paperwork, and flexibility.

If you decide to form an LLC, start by reviewing your state’s regulations. You can either work with an attorney or tap into a formation service to save money and expedite the process. If you’re unsure about which business structure to choose or how it can benefit you, work with an accounting firm to understand the finer details and how this affects your tax liability.

Promote your business’s growth

Expanding your small business is an exciting — yet busy — process. Amid the frenzy, don’t forget to promote your expansion in every way that you can.

Your customers and colleagues love to celebrate your wins with you. Announce your company’s growth on social media, in your email newsletter, on your website, and everywhere else you can. If you are opening a new store, launching a new product line, or achieving some other big milestone, consider writing a press release. Press releases are a fantastic tool for getting media attention — especially when there is a unique local angle. Instead of being quiet about your growth, announce it to the world. Leverage this attention to help grow your business even further. If you find yourself overwhelmed, consider consulting a marketing agency. They may be able to guide you in the right direction.

No matter how you plan to expand your business in 2021, take the time to celebrate and enjoy this moment. As you make these important considerations, be proud of what you’ve achieved. It is through this momentum that you will be able to tackle whatever is up next in your entrepreneurial journey.

Let Us Crunch the Numbers

Whether you need financial consulting, accounting assistance, or help with your budget, Crunch Consulting is prepared to help crunch the numbers so you can stay focused on the bigger picture. Reach out today for a free introductory consult.