Most business owners focus on the core of their business and what they are good at. These services are at the core of who they are as a business and managing the books takes away from the core. More than 80% of small business owners use accountants or bookkeepers to manage their books and/or prepare their taxes. The tax return is not the only reason you should be hiring a bookkeeper, accountant or payroll partner.
Here are a few areas you should outsource to these professionals for better business management.
1. Manage Your Cash Flow
Cash flow that comes in and goes out of your business is the most critical element of your business. If you manage your cash flow poorly, you may find yourself racking up credit card debt or out of business. Understanding and monitoring your cash flow is not a part-time job. You should be:
- Reviewing your budget and cash flow and determining where you can trim your outflow or reduce your overhead. The simple principle is (spend less = better cash flow).
- Your accountant can help you with the collection process to make sure your outstanding invoices are being paid promptly.
- Your accountant can also help you determine if you are charging to little or to much for your products and services. Having the right pricing strategy will affect your cash flow too.
2. Theft Protection
Small businesses in America with less than 100 employees suffer a median loss of $200,000 according to the Association of Certified Fraud Experts. The most common type of fraud is over billing or misappropriation of funds withing the company.
The best way to tackle this is to have an outside accountant or bookkeeper run a random audit of your business to make sure things are running smoothly.
3. Payroll Taxes
Payroll taxes are complex and ever-changing. Taxes are a concern for every business owner. Some self-employed business owners like to handle their payroll and taxes themselves with software solutions like Quickbooks. However, many business owners prefer not to spend their time researching and keeping up with changing state and federal laws just to maintain an acurrate payroll.
That is where a payroll partner like Check-Write payroll is a great solution. By outsourcing your payroll solutions, companies like check-write manages all the details. They work with you to determine the correct withholdings and timely production of paychecks and direct deposits.
4. Business Taxes
The IRS is there every year to double check your taxes and make sure you are paying your fair share to Uncle Sam. Income taxes are also very complicated, and often the larger your business grows, the more you pay in. Some of the benefits of using a professional accountant are:
- You can take advantage of new laws that go into effect because they are up to date with changing tax rules that affect you.
- They can help you maximize write-offs in your business to offset how much you pay into the IRS each year.
- They can issue w-2’s and 1099’s to any independent contractors or employees that you have on the payroll.
- They can help you to avoid wrong filings and any other missteps that may get your business flagged for an audit.