Behind Every Great Business Is a Great Accountant
by Kaitlynn Sirotkin, on Nov 23, 2016
As a business owner, you’ll find yourself relying heavily on your accountant’s unique insights - trends and ways of thinking that you may not know to look for. They can give you a high level view of your business’s financial health and steer you towards improvements month over month. They’ll also be there to support you if/when your business is audited. For these reasons, it’s imperative that every business invests in a great accountant. Still not convinced? Read on; we’ll sit tight and help you find the best accountant when you’re done.
Accountants help make informed decisions for the future of the business - and identify accounting-related issues early
After your accountant reconciles your bank account for the month, they’ll review your balance sheet. This reports all of your business's assets, liabilities and equity. As part of this review, they’ll look for anything abnormal, so if something seems funky, you’ll be the first to know. As a business owner, you can benefit from an accountant who keeps tabs on changes in gross margin and bottom line net income. By being aware of these metrics and any others that are specific to your business, your accountant can help you make long-term decisions for your business. With a trained professional by your side, you can have peace of mind knowing they have your best interests in mind.
It is impossible to make decisions for the future of your business without knowing where it stands today. You should work with your accountant to discuss how your business is performing and set future goals. Talk through the past year so you can compare previous decisions with financial trends. You’ll see what your business responded well to, and what should be avoided for the next year. Additionally, your accountant can determine if your business was incorporated properly, which could result in some serious savings come tax time. Great accountants will always have accurate historical data, so looking at the data they provide should be like stepping into a time machine.
Accountants are your best friends if/when your business gets audited
If this happens, the IRS will contact you first and your tax accountant may be able to represent you. Here’s what to expect: your accountant(s) / tax advisor(s) will tell you best practices for sending documents over to the IRS. You’ll have someone on your side who is familiar with what the IRS is asking for, and if they don’t already have the necessary documentation at the ready, they’ll know where to hunt down the necessary information.
There is no way to predict when an audit will take place, however it will come at the worst time - that’s just how the IRS works! But having a great accountant in place now will ensure you’re prepared with the best tools should this day come.