Is your business missing out on essential accounting resources that could help it grow?
Money—it’s how you measure success in business. It’s also how you pay the bills, pay your employees, and keep your business running. Unfortunately, many small business owners are selling themselves short by operating without essential accounting resources, according to a survey by Clutch.
We've written recently about the importance of cash flow management for a small business and how your balance sheet can help you measure your company’s progress towards its goals. Just as much as your cash flow statement, a knowledgeable accountant is another essential tool to guide your business as it grows.
But Clutch’s survey found too many small business owners are trying to get by without this valuable guidance. Here’s a closer look at what the survey found.
Accountant, bookkeeper, or neither?
Nearly half of small businesses (45%) in the survey do not employ either an accountant or a bookkeeper. One-fourth have only an accountant, 11% have a combination accountant/bookkeeper, and 4% have only a bookkeeper.
Both accountants and bookkeepers perform important—but different—functions for a small business:
1. A bookkeeper maintains records of the business’s day-to-day financial transactions, such as recording income and expenses. Bookkeepers can also handle your company’s payroll and invoicing.
2. An accountant can prepare your business’s tax returns, and also provides a big picture perspective on the business’s finances. He or she can prepare and review your company’s financial statements, produce reports, and advise you on important financial decisions affecting your business.
Many small business owners engage in some really risky business when it comes to accounting: Almost three-fourths (72%) rely on the same person in their company to handle both bookkeeping/accounting and human resources.
For a small business with only a few employees, this option might seem to make sense. However, both accounting and HR are specialized fields. Both require staying up-to-date with the latest regulations and laws; both are complex areas where mistakes can lead to penalties and fines or even lawsuits.
Do you really want to put such important functions in the hands of one person?
Instead of enlisting your bookkeeper to handle HR—or putting your office manager in charge of accounting—consider hiring an outsourced accountant. By using an accountant as needed, you can get the benefits of his or her expertise without the expense of a full-time employee. No wonder 22% of companies that use accounting services rely on an outsourced accountant.
Do yo have a business? AGC Advisory is a specialist in all business and financial services, offering small and medium-sized entities (SME) a solution towards achieving greater success and productivity. Our services include, but are not limited to, bookkeeping, payroll tax, cash flow, financial planning, reporting and much more. It is our mission is to help clients achieve their professional and personal goals by effectively combining two elements; strategic planning and a flexible approach. Contact us today.