As your small business grows, you will likely come to the realization that you need outside help.
You might have several financial inquiries and not know who to turn to.
You might not even know if your accounting is accurate or how to keep your books in order.
A professional finance company can be of great assistance in many areas, including accounting and payroll services.
They will guide you through the process of finding the right financial tools that help to grow your business, and they can answer any question that you have about what is most important for your particular needs.
A professional finance company will be able to work with any size budget, which gives them the ability to offer personal service no matter how much money you have available.
Interested in learning more? This blog post explores why it is important that your business hire a professional finance company.
Table of Contents
- What Will a Professional Finance Company Do For Me?
- Reasons to Hire a Professional Finance Company
- Checklist For Hiring a Professional Finance Company
- Summing-up With a Finance Example
What Will a Professional Finance Company Do For Me?
Certified public accountants can help you with anything from bank reconciliations, cash flow statements, payroll assistance, and tax returns.
They will also provide financial advice that is personalized for your needs as a small business owner.
It’s very important for small businesses to maintain accurate records throughout the year so they don’t end up paying more taxes than necessary or missing out on deductions if there are errors in their bookkeeping system.
A professional finance company has access to software programs designed specifically for this purpose which makes it easier for them to prepare reports like:
- profit and loss statements,
- cash flow projections,
- balance sheets,
- forecasts budgets, and
- payroll tax schedules.
With the right software and a qualified finance specialist, you will have all of your information accurately organized into one central location.
This is important for tax preparation time as well because it makes filing easier.
These reports can also be used to help with budgeting issues throughout the year as they show projections on cash flow which means you’ll know how much money should be coming in and going out each month based on past performance.
Reasons to Hire a Professional Finance Company
The decision to hire a professional finance company for your small business can be an overwhelming one.
There are many benefits of hiring a professional, but the first step is to determine what type of financial services you need.
Here are some reasons why you should consider using a specialist in this field:
- A certified public accountant will provide you with tax assistance and guidance throughout the year.
- An experienced finance company will help save on accounting costs by providing more accurate projections on cash flow and budgeting support.
- A qualified professional has more knowledge about industry regulations which means they know how to avoid penalties.
- They have an understanding of business management and the best ways to run your operation.
- A professional finance company has access to tax services that regular accountants don’t specialize in such as LIFO (Last In First Out) computations Inventory management planning Tax structuring Financial modeling.
- A finance company will provide you with a more accurate forecasting of your cash flow by taking into account the following:
- Seasonality cash discounts/rebates
- New product support or discontinuation of products
- Uncollected accounts receivable
- Bad debts
- Insurance claims
- any other financial events that may affect business
It’s important to remember, hiring a professional doesn’t mean they’re going to do everything.
You are still responsible for doing tasks like preparing records and bookkeeping reports but having access to their expertise can make it much easier when tax time comes around.
Checklist For Hiring a Professional Finance Company
If you need help determining which type of service best suits your needs, consider using this checklist below as a guide:
- Do I want customized advice?
- Do I need a flexible tax strategy?
- Will my business have seasonal fluctuations that may affect the amount of taxes owed each year?
- Is there any risk involved with penalties or losing deductions if the information is handled improperly?
- Does my company file different types of returns such as personal and corporate income, payroll, sales & excise, etc.?
- Can I spare some time from other areas in order to keep up with bookkeeping reports which will require more attention throughout the year?
If you answered yes to all of these questions then hiring a professional finance company would be a great option.
However, if your answer was no for any question you might want to reconsider evaluating your options such as using software on your own or working with an inexperienced accountant who needs spoon feeding but saves you money, nonetheless.
Summing-up With a Finance Example
These are just some of the many reasons why you should hire a professional finance company but if you’re still unsure how much time will be saved by using their services, consider this example below:
Joe’s Plumbing Shop generated $50,000 in net income last year and was sent an unexpected $500 water bill.
The firm’s accountant completed tax returns within three weeks by using their services while Joe spent that time fixing the plumbing problem instead of doing his taxes.
End result? Joe saved a lot of money and had more free time to work on his business.
Does Joe’s situation make you pity yours? So, what are you waiting for?