Importance of Using an Accounting Service
Importance of Using an Accounting Service
Importance of Using an Accounting Service
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The Importance of Using an Accounting Service: What’s in it for you?
The Importance of Using an Accounting Service: What’s in it for you?
Running a business is often difficult. You’ve got plenty on your plate without compounding things by having to do the accounting too. Business owners who do not have a background in this can make things easier by having someone do the accounting for them.
When it comes to business practices, a lot of small companies don’t use an accounting service. With that said, partnering with one makes sense for a lot of reasons. A good accounting service does much more than just keep up with your finances.
In this blog post, we will discuss the importance of using an accounting service. Here is what it does and a few of the ways your business can succeed with its help.
What Does an Accounting Service Do?
Tax Deductions
An accounting service ensures that you get the most deductions possible, including the ones that you may not even realize, are available. Instead of waiting ’till the end of the year to try and calculate missed deductions, an accounting service helps throughout the entire year to calculate deductions as they are incurred.
An accounting service can also help advise you of a strategy. For instance, some small businesses may forget to include or keep receipts for out-of-pocket expenses, home office space, and other legitimate business expenses. An accounting service keeps up with every detail.
And let’s face it, deductions are crucial in keeping a little more profit in your pocket. It is the accounting service’s job to do exactly that. It not only knows the ins and outs of what is deductible, but it can also identify what might raise a red flag and potentially cause an audit.
Saves Time, Money and Headaches with an Accounting Service
Some businesses think that they cannot afford accounting services. This is simply not the case if you weigh in the time, money and headache of doing it yourself.
Your focus is on your business, and well it should be. Instead of worrying about paperwork and financial details, you will have the time to focus on your company if you hire someone else to do the math. And, when you concentrate on the operations of your business, it will excel from the attention you are giving to it.
One of the reasons it actually saves money is that an accounting service catches financial mistakes that can cause headaches down the road.
Having an accounting service also saves money elsewhere. You’re not paying for an extra employee’s insurance costs or sick leave – all of the employee overhead that you would normally pay for an in-house accountant is eliminated.
Make Real-Time Decisions
Many business owners do not know what calculations need to be made when making critical decisions. Hiring more employees and acquiring additional office space are just a couple of examples. These are big decisions, and you must be able to determine whether they are affordable or even a good idea for your business.
An accounting service can look at the overall business finances and help you make an informed decision that is in the company’s best interest. The service can easily pull reports from past months and give you input on the best time to pull the trigger. It will know your budget and what you can or cannot afford to do.
Navigating Taxes
An accounting service helps you with the Internal Revenue Service. But it offers more than just help with a potential audit. A service helps you navigate legal loopholes and maintain more of your income.
For instance, the U.S. tax code can be used to your company’s advantage. And an accounting service knows about the Section 179 deduction, Foreign Income Exclusion (FIE) tax credits, and other items you may not be familiar with.
Payroll and Accounts Payable
Payroll and accounts payable errors happen, and they happen more often when businesses do not have proper help in place. Look at it this way: Just one mistake with payroll or accounts receivable can mean hours of extra work. Not only does this take up precious time that can be put towards the business, but it also causes discord among employees and maybe even distrust of your accounts payable. Even a small error can double or triple the time you spend on a task.
Your Time Is Valuable
One of the most important reasons to reach out to an accounting service is the investment of your time. Sure, when you start a new small business you may be somewhat successful with the do-it-yourself approach. However, as the business starts to bloom, your time becomes more valuable. Not only that, but the books become harder to keep and the tax implications grow more difficult. All of this reverts back to your time being an important factor. You cannot focus on everything your business needs if you are taking all of your time to do the accounting. Mistakes can happen more often, and it simply takes the fun out of owning your own business.
In Summary
According to a news release from Score:
Perhaps unsurprisingly, 40% of small business owners say bookkeeping and taxes are the worst part of owning a business. Specifically:
•47% dislike the financial cost (staffing, etc)
•13% dislike administrative headaches and time
•13% dislike the complexity of compliance
•10% dislike changing regulations and confusion
•8% dislike all the paperwork
This shows some of the reasons accounting services like Davis Crawford Accounting and Tax make your life simpler, providing you with peace of mind and less frustration.
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