Whether you have a start-up business that you are trying to get off the ground or your business is more established, you may benefit considerably by using accounting services. While some business owners only think about accounting services when tax season approaches, the fact is that the right accounting firm can benefit your business year-round. When you better understand how the skills and expertise of an accountant can help your business, you may be ready to employ these services more effectively in your company.
Year-Round Benefits of Accounting Services
It is true that accountants are often relied upon heavily during tax season. Preparing and filing a business tax return can be complicated, time-consuming and even confusing, and an accountant can streamline this process. However, many companies are required to make quarterly tax reports to the IRS. In addition, budgeting, financial planning, payroll, accounts payable and receivable and other financial tasks must be completed on a regular basis. These are all areas that an accountant can assist you with, and this is why the companies that most effectively employ accounting services use those services year-round. In fact, the most effective way to use these services is to find a trusted accountant that you can rely on for assistance with all aspects of your company’s finances.
For Funding Purposes
There are instances when your financial records will be reviewed by other parties, and this extends beyond the annual tax return that you prepare for the IRS. Patrick Accounting gave the example, “if you are looking for investors to provide funding for your business, if you are shopping for venture capital or if you are applying for a business loan, your financial statements may be reviewed with a fine-tooth comb by one or several parties. While you do not need to have an accountant to prepare a profit and loss statement or an operating statement, the fact is that many of these third parties will consider those statements that have been prepared by an accountant as being more accurate and comprehensive.” In fact, some will only review or accept statements that have been prepared by an accountant. When an accountant works with you regularly and understands the ins and outs of your business, the statements can be prepared accurately and may be on-hand to provide to these third parties as needed.
Cloud-Based Services
Some companies prefer to utilize the services of a live accountant who has an office in the same town. Business owners may find comfort in meeting with the accountant personally from time to time to discuss financial concerns and to transfer paper document by hand. However, many are making the transition to cloud-based services. With these services, financial information about your company may be transferred electronically and in real-time in some cases. You may have access to it from any location at any time. The additional benefit associated with cloud-based services is that you do not need to worry about the paper documents becoming lost or destroyed. They are saved and backed up in the cloud so that they cannot be lost, damaged by fire, stolen or otherwise compromised. The financial data and records associated with your company’s operations is vital, and business owners who understand this are generally looking for cloud-based services. Keep in mind that some local accountants also offer cloud-based services, and this can provide you with the benefits of both types of services.
Managing your finances properly is one of the most important steps that you can take to promote the success of any business. When you fall behind with accounts payable or receivable, when you fail to keep up with changes in the tax code or when other financial issues are affecting your company, the impact can be detrimental. While some companies will only use accounting services for annual tax filing purposes, the fact is that the companies that employ these services more thoroughly are enjoying beneficial results.
