Why A Small Business Owner Should Have An Accountant?
There is a great accountant behind every business, a wise saying even in this digital era. But nowadays, it is the best business accounting software that makes or breaks businesses worldwide. And more significantly, for small companies, many believe that they do not need an accountant. A small business owner may be proficient in his or her business, but for filing taxes, accounting, and finance, they sure need an accountant.
Having an accountant is a statutory requirement in this fast and changing world rather than a luxury or a prestige issue. Hence continue reading to know more about why small business owners should have an accountant or the best accounting software.
The rising importance of small business accounting software
This type of software is now available within the budget of small business owners. Since it is more of a necessity than a luxury, its importance is rising as accounting is all business language. It is the reason that experts predict the accounting software market size to increase at a CAGR of 8.02% from 11,071.6 million USD in 2018 to 20,408 million USD by 2026. Previously, accounting software-enabled only maintained the general ledger, payroll, accounts payable, and receivable. The software now takes care of CRM or customer relationship management, HR, supply chain management, reporting applications, dashboards, and more. Hence there is a growing need for the best small business accounting software globally.
The reasons for small business owners should have an accountant
Even small business owners cannot afford to lose track of finances, which could adversely affect their profitability and sustainability. Accountants are experts in maintaining accounts like a doctor taking care of patients. Though the business owners know their business in and out, a specialist is essential for growing the business in this digitalized and globalized business world. As per a 2019 report, over 87% of small business owners confirm their accountants are the trusted advisors for solving many issues and developing their companies. Another report confirms that 33% of small businesses were helped by accountants to apply and get the COVID-19 funds. There are also many other vital reasons for small business owners to have an account and include:-
Help to avoid costly mistakes and provide professional support to take the right decisions on specific issues that could make or break small businesses.
Helps to solve the financial challenges of unforeseen expenses and to mix business and personal finances by small business owners.
Facilitates making tax filing and other mandatory requirements regarding accounts and finance for the business owners to do it in time to avoid penalties and other legal issues.
Helps in choosing the best business structure like a sole proprietorship, LLC among others, for the scaling of the small business to new heights.
Assists in payroll processing, budgeting, cash flow management, and forecasting to develop small businesses.
The above reasons will surely convince any small business owner to have the best accountant or excellent small accounting software.