Starting and running a small business can be a daunting task. Coming up with a business plan, finding a location, registering correctly, and, perhaps most importantly, managing funding, are all massive hurdles to cross.
However, despite the relief that comes when your business is up and running (and hopefully profitable!), it’s important to make every effort to continue to maximize every dollar and cent as your business grows. One of the best ways to save money and help your business grow is to hire a Certified Public Accountant (or CPA). Here are three reasons why.
1. Simply Put – They’re An Expert.
There’s a lot of pride to be had in starting a small business. The amount of work it takes, coupled with the immense risk, and the result of producing a success that creates jobs and provides people with a service is nothing short of an incredible feat.
Related: Automated Bookkeeping Explained
It certainly takes a special type of person to do that – someone with ambition and clearly definable smarts in a number of areas. With that said, the biggest fault of a successful small business owner might be their belief that, because of the immense amount of solo work they put into their venture, they can do it all.
While it’s true that such a task requires a lot of broad know-how, there’s no shame in admitting there are places where you may not have the right amount of expertise to succeed. Managing your business’ books is likely one such place.
Hiring an accountant, or, depending on your needs, a bookkeeper, doesn’t have to be difficult. That’s why TripLog partnered with 1-800Accountant to bring you an affordable way to get an accountant or bookkeeper onto your team.
2. Their Whole Job Is To Save You Money
Without question, hiring employees or consultants is a cost-benefit issue. However, depending on the size of your small business, managing your finances might just not be something you have the time to do accurately. Thus, there’s a good chance that your business will lose money in the long run via inaccurate expense management.
Having a bookkeeper or accountant is a powerful (and simple) way to get a handle on your financial situation. It’s important for any business to know where its money is coming from and how it’s being spent, but small businesses need to spend or save virtually every penny brought in.
An accountant will help you maximize your tax deductions, manage your budgets, and ensure that your business stays compliant to local regulations. Their arsenals are full of money-saving and cost-cutting tips and techniques, designed specifically to save you money.
In order for your business to grow, you will need a clear and direct view of your business’s finances. Making well-informed financial decisions is critical to the continued success of a small business.
3. A Small Business Accountant Can Help You Avoid Audits
One of the most crippling things that can happen to a small business is a costly audit. While you’re unlikely to purposefully commit tax fraud (we hope!), inaccurate bookkeeping can result in an audit by the IRS (or your government’s own revenue agency).
As a small business, you likely don’t have scores of cash stored away to help repay taxes from an inaccurate report, so it’s important to get your taxes done correctly the first time. Hiring an accountant or bookkeeper that you can trust can give you and your team the peace of mind you deserve as you work to grow your business.
What Else Can A Small Business Do To Save Money?
In addition to hiring an accountant, there are plenty of robust and affordable tools and apps you can use. For instance, TripLog Expense gives your team the ability to submit, review, and approve expense reports with the TripLog mobile app.
You can keep an organized record of your business transactions and generate detailed expense reports to help make sound decisions that will affect your business. You can also manage mileage reimbursements and provide your team with company mileage tracking options.
Download our mileage tracker app on iOS or Android, or schedule a free demo today to see what else TripLog can offer your business. You can also try our mileage reimbursement savings calculator to see how much more you could be earning!