As a small business owner, your bottom line is your top priority. You want to make the best financial decisions possible to ensure that your business is a success. However, you also have to deal with your day-to-day responsibilities, which are also crucial to your growth. This can leave you worn thin and potentially less able to make the best financial decisions possible. Working with the professionals at Leshinsky Finance is the best course of action.
Here’s Why
There are many benefits associated with using a professional bookkeeper or account. Perhaps the most important for small businesses is that they can act as a partner, working to solve financial problems and make sure that you follow labor laws, insurance, and other regulations appropriately. Some can make sure that your business is set up with the right entity, with your state. For example, your accountant might recommend choosing a limited liability company structure in order to take advantage of LLC-specific deductions.
Your CPA will also have extensive knowledge of everything from investments to how to offer benefits, such as a retirement plan, to your employees. Nationwide Insurance asserts that employer contributions to retirement plans may be tax-deductible and, depending on the type of program you use, may make your business eligible for special tax credits.
Using a professional accounting service, you are assured that your business licenses remain up-to-date and that you have budgeted for those that are most important or required for your business. A financial partner will also help you plan your marketing budget so that you will have plenty of money available to participate in networking events and investment opportunities within your local community.
Auditing and Compliance
Record-keeping is one of the most important parts of owning and managing a small business. The IRS pays close attention to numbers that don’t match up. This means that if you are ever audited, you better have records that clearly outline your income and expenses. Most accounting services can help you take steps to prepare for a formal IRS audit by performing an internal one. According to accounting “matchmaking” service Ageras, having an internal audit means that you’ll have access to an auditor’s report that clearly illustrates your financial standing.
How worried do you need to be about becoming a target of an audit? As long as you’re keeping up with your records, and as long as you have submitted timely and accurate information, probably not much. However, as CNBC explains, President Biden has recently stepped up efforts to combat tax evasion by small businesses.
Depending on where you’re located, you may also have state-specific obligations to stay on top of. In Rhode Island, for instance, you will be required to file an annual report to avoid getting your business’s authorization to operate revoked. Some accounting or bookkeeping services can take care of this. Alternatively, there are formation services that can do the filing for you.
More Reasons Why
In addition to keeping your records up to date and handling the audit process, your accountant can also free up time for you. Your expertise is best channeled to those parts of your business where you're most knowledgeable. Just as you would not try to design your website on your own, it’s almost always best to leave the numbers to the number crunchers. Further, since tax and accounting laws change often, having an accountant means being able to rely on their knowledge of the most current financial regulations so that you don’t inadvertently make a mistake that could cost you in the long run.
Your small business is made up of a team of people that work for your benefit. But that does not mean they have to be your employees. Having an accounting service in your corner means you have support in the financial arena. Before choosing an accountant, ask other business owners for recommendations and check reviews online to ensure your chosen provider is as professional as they seem.
For the accounting and bookkeeping help you need with a focus on real estate investing, reach out to Leshinsky Finance today.
Written by Chelsea Lamb
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