Entrepreneurs typically take the reins on every aspect of their businesses, but being responsible for both details and the big picture can be overwhelming and exhausting and, in some cases, can lead to costly mistakes. That’s why it’s a good idea to get help from a qualified accounting service, which will allow you to focus on the things you’re good at and will give legitimacy to your financial well-being.
An online accounting service complemented by a CPA or accountant can help keep you on track with everything from payroll services to figuring out your tax responsibilities, which will keep you from getting in over your head while avoiding fines or worse come tax time.
Check out the following advice on why accounting services can be one of your most valuable assets as an entrepreneur.
They Keep You Up-to-date with Tax Changes
One responsibility you’ll face as a new business owner is staying up-to-date with tax form changes and finding out where to acquire them. Some will be mailed to you, but others may have to be downloaded from the IRS website or from a local government site. It’s especially important to learn about changes to employee forms like the 1099. Now divided into two separate forms–the 1099-NEC and the 1099-MISC–this tax paperwork has different designations for payments made to independent contractors and those made to landlords or legal settlements, respectively.
A certified accounting service can help you figure out the correct form to use and keep you updated on changes where your responsibilities are concerned. When it’s time to file, you can keep things simple and quick by choosing the 1099 e-file option in your QuickBooks payroll software, which allows you to submit these forms electronically to contractors and the IRS.
They Help Provide Peace of Mind
Not only can a professional accountant help you come tax time, but they can also keep your books organized throughout the year, which will be extremely helpful when it’s time to look for a business loan, pay off creditors, or meet with potential investors. Having your statements prepared by a pro will lend some legitimacy to your business and ensures you won’t fumble when faced with major financial dealings.
A professional accountant can also help prevent an audit, making sure that your business has all the correct paperwork in order and that everything is filed on time. Audits are extremely detailed and include more than just bank statements, ranging from itemized receipts to equipment and appointment logs, and the process can be challenging even for business owners who have nothing to hide and are well-organized. Having an experienced accountant on your side will give you some peace of mind if the IRS flags you for an audit.
They Help Keep Your Payroll in Order
Peace of mind extends to more than just tax-related issues. Payroll and HR tasks can be frustrating to handle even if you don’t have many employees, but an accountant can help you tackle them with ease. In fact, many services can assist with everything from the increasingly popular background check to maintaining employee records, which takes some of the load off your shoulders. You may also need advice when it’s time to figure out the impact of Covid-related funding at tax time, or benefits afforded to your business.
They Help You Plan for the Future
No matter how many people you employ now, you may choose to add more down the road as your business grows, or you might expand to a bigger space or multiple buildings. This all requires funding, marketing, and careful budget planning, and who better to help with that than an accountant? Having a pro to assist with preparing documents will allow you to face the challenges that come with growing a business head-on.
As a new business owner, you have a lot to plan for and think about. By utilizing a few professional services, you can give yourself more time to take care of the big ideas rather than worrying about the details, and you may even reduce some stress at the same time.
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