If you have ever asked yourself the question, Do I need an accountant? then the answer is probably, yes. There are many different reasons, and those reasons only compound if you are a business owner.
An Accountant Saves You Money
Most people seem to think that if they do things themselves that they will be saving money. On the very surface it looks that way. You pay an accountant $150 to do your taxes, or you do them yourself for $50 (or less) in software. It appears as though you are saving money by doing it yourself. But we have to look a little deeper than the surface to find how an accountant saves you money. And there are two ways that happens.
First, you have to take into account the opportunity cost to do your taxes by yourself. You sit down and assuming the software works properly, you still spend at least 2, 3, or even 4 hours plugging in numbers and trying to get everything to work out just right. If you value your time at just $25 per hour, then you have spent another $100 on your taxes. If you are a business owner, your time is likely valued at far more than $25 per hour.
Second, you have to take into account that you dont know the tax laws. The software is pretty good at determining which deductions and credits you can get. But it only knows as much information as you offer. Your accountant can ask questions, get a deeper feel for who you are, and ultimately he or she can find you more credits and deductions than you could have found on your own.
In the end it looks like this: do it yourself and pay $50 to get a refund of $1,000. Your net gain is $950. Hire an accountant and you pay $150 to get a refund of $1,400. Your net gain is $1,250. Which would you rather have?
An Accountant Saves You Time
Up above we touched on the opportunity costs of doing your taxes on your own. If you are a business owner, your accountant provides far more services than just tax preparation. Every one of those services frees up your time so that you can build and grow your business.
For instance, if you have an employee, then you have to worry about payroll and all of the taxes that go along with that. In the end you spend a lot of time learning payroll, writing checks, balancing the books, and all the while you hope that you got things done the right way. Your accountant can take away those worries, and free up a ton of your time.
As a business owner you know that anything that is taking away from your time is something that is taking money from you. The more organizational and managerial tasks you have to do, the less you can put into the parts of your business that not only bring in money, but they inspire you and intrigue you and urge you to keep pressing on.
Find an Accountant and Save Time and Money
These are just two of the ways an accountant can help you. That is not to mention that your accountant is also a business consultant, another person to bounce ideas off of, and someone that can help you generate leads for what you do.