Many small business owners don’t comprehend that a surprising 80 percent of U.S. businesses fail within the first 18 months. Poor financial management is one of the main reasons for that.
In spite of these dire consequences, many business owners go unaided when it comes to managing their money. Approximately 53 percent of small business owners don’t use accounting services at all. Even more shockingly, 27 percent of these use pen and paper to keep track of their finances.
While it should not be concluded that these businesses are worse off without accounting services, the breadth of knowledge and experience an accountant can bring shouldn’t be undermined.
These professionals do more than just filing taxes; they take a rather comprehensive assessment of all the finances and create a forecast through the year to keep business at a healthy and prosperous state.
It is inevitably true that taxes and accounting services in New York are crucial for every business, here’s why:
1. Get All the Deductions
During the busy tax season, most business owners are thinking frantically about how they can maximize their deductions. However, by the end of the year, it is too late to get any benefit out of it.
An accounting firm can help you in easily identifying potential deductions throughout the year and offer you advice on how to make strategic decisions for year-end deductions.
2. Avoid an Audit
Audits are daunting and dreaded by every business, irrespective of niche and area of operation. Unfortunately, most business owners think that accounting services can fix these issues after they’ve occurred.
The important thing to realize is that an audit can be easily avoided if you have year-round guidance and counsel of professional services.
3. Save Time and Energy
Most business owners have a common thought that a tight budget means they can’t afford to hire professional services. However, when you think about how much time and effort you are going to spend trying to manage the finances yourself (not to mention the potential errors you would incur in tax preparation, and other related losses from poor financial decisions), the benefits clearly outweigh the cost.
4. Make Real-Time Decisions
Having professionals as your financial advisor in helping you with budgeting and monitoring cash flow on a routine basis will allow you to outplay any hurdle that may occur.
The collaborative approach of you and your accountant, allows you to make real-time comprehensive decisions, based on the extensive financial data accumulated by them.
5. Plan for Future
Probably one of the biggest advantages of hiring professional accounting services is getting advice on how to effectively plan for the future to stay competitive and viable.
As a business owner, you will be preoccupied with routine operations of running the business; accounting services can take a step back and logically look at the bigger picture to find the best possible way to support the longevity of the business.
It can be intimidating to let an outsider in on the crucial details on how business is running, especially if you had trouble managing your finances in the past. However, partnering with taxes and accounting services in NY will actively help you in achieving your goals and concreting the foundation of long-term success.