A Few Ways Accountants Help Business Owners Make the Right Business Decisions

There are several advantages to hiring an accountant for your business, and some provide affordable accounting for freelancers.  First, accountants understand what the numbers on financial statements represent and what problems they could be indicating. Hiring an accountant for your business will improve your ability to make decisions for it because, once again, accountants can see beyond the numbers on financial statements. 

Below are 6 ways accountants can help your business:

1. Start-Up Process

One of the ways accountants help business owners is by utilizing their financial knowledge to help set the business up for success.  For example, an accountant can help you select the right business structure.  In addition, an accountant will establish correct accounting processes that are organized and in compliance with government regulations.

2. Growth

Collaborating with an accountant can help a business flourish.  When companies are experiencing growth or trying to achieve new heights, accountants can help by providing business managers insight into cash flow management, inventory management, and tax preparation for entrepreneurs.  They can also prepare forecasts and budgets to help guide a business and ensure it is in line with the goals already established for it.  In addition, your accountant will ensure a smooth transition when you are going through any mergers, acquisitions, or business sales.

3. Operations

Accountants help businesses with regular operations by offering monthly preparation and analysis of financial statements.  The analysis will help managers make well-strategized decisions based on the most current data.  Business accountants can also help by overseeing payroll and estimating annual tax payments for their clients.

4. Regulatory & Reporting Compliance

Business accountants make sure that business owners are following government regulations properly.  In addition, they make sure that important deadlines are met— such as for tax filings.  Business accountants can also help a company during the audit process by offering the auditor accurate company data.  The presence of an accountant from the beginning ensures this process will go smoothly because the data will be organized.

5. External Financial Relationships

Businesses usually collaborate with many different financial organizations.  Accountants can manage these relationships and handle the work that firms must do for tax compliance, banks, or investors.

6. Avoid accounting mistakes

Accountants help businesses prevent financial mistakes that could cost them a lot of money.  An accountant will prevent small and large mistakes—from overdrafts to bank account reconciliations, to missing a tax deadline that could result in huge penalties.

Conclusion

Having an accountant for your business team will give you valuable insight that will help drive good business decisions.  Delegating this work to a part-time accountant will give managers and owners more time to focus on their business's operations. Agro Accounting CPA is a cost-effective solution for business accounting services.  The firm renders outsourced accounting on an hourly, onsite or remote, and part-time basis.  To learn more about the benefits of having a part-time accountant, connect with Agro Accounting CPA.

Learn How to Do Tax Planning for Freelancers

 Freelancers are considered by the IRS to be self-employed individuals for tax purposes. All the rules pertaining to self-employed individuals are applicable to freelancers as well. Thus, they can save money on taxes using legal means. That’s what tax planning does! It focuses on finding and applying legal ways to save taxes on income.

If you also want to make the most of the tax rules to save money on taxes, then invest in tax planning for freelance workers. Let’s find out how to do tax planning for freelancers.

Do your research

The first step is to know your tax-saving options. Tax planning goes beyond using business deductions to save money on taxes. It includes things like investments into IRA accounts, using tax credits, making donations, and other creative options. Learn all the available options that can help you save taxes in the long term.

Hire an accountant

The next step is to hire an expert accountant. A Certified Public Accountant has knowledge and experience in tax planning. Your accountant prepares and analyzes the financial statements of your business and recommends options for making investments that help you maximize your tax benefits.

Take proactive steps

There are not too many freelancers that care/focus on tax planning. In fact, a significant number of freelancers do not even make full use of their business deductions! Therefore, it is very important to take proactive steps and to think of the tax years ahead. Make investments in an IRA, look to earn tax credits for your business, change your business structure if necessary, etc. in order to save money on taxes.

If you are looking for an expert accountant for tax planning and preparing income taxes for freelance workers, get in touch with Agro Accounting CPA’s team of expert accountants today.

How to Make Accounting Affordable as a Freelancer

The best way to make accounting affordable for freelancers is to follow the hybrid approach. There are a few accounting tasks that you can do by yourself. But some tasks are best performed by software and, for other tasks, you need the support of a Certified Public Accountant. For example, bookkeeping is an integral part of conveyancing. Using bookkeeping software is the best way to manage it.

Similarly, for optimizing income tax returns, you need an expert accountant who can calculate, prepare, and report business tax deductions accurately. On the other hand, if your freelance business is not yet “on the map,” you can prepare your income tax returns yourself with the help of a tax preparation guide for freelancers. Nevertheless, when it comes to complex accounting tasks such as tax planning and financial planning, you should hire a professional accountant for freelancers.