You started a business because you were passionate about creating a specific product or providing a certain service. But running a business comes with a lot of decisions and back-office work. You have to deal with marketing, licenses, and most of all, finances. Some entrepreneurs try to take a DIY approach to their accounting in hopes of saving money. But there are some solid benefits to hiring a qualified accounting expert.
Time – Outsourcing your business’s finances frees up you and your personnel that were working on your accounts to perform other needed tasks within your organization. Employees are expensive and this will allow you to use them more effectively in your organization.
Money - Having your accounts always in balance saves the time and effort to find where the mistakes were previously made. This will allow you to manage your business on a stable monetary foundation.
Penalties - All of your reports will be processed accurately and in a timely manner. No more late payrolls, quarterly reports, or taxes which can have large monetary penalties levied. You do not want to deal with local, state, or federal authorities on your own. Having an accountant maintain your general ledger and other associated accounts will help eliminate this problem.
Others - Having a professional accounting organization working with you or your company will generally make it much easier to deal with bankers, lawyers, and vendors. This will add the quality and trust to those long-term relationships that are vital for your business to be successful.
Utilizing an experienced accounting firm will allow you to focus on the business you’re passionate about, while the financial experts handle things like:
There is nothing worse than coming to the end of an accounting cycle (be it weekly, bi-weekly, semi-monthly, or monthly) and finding out your bank account does not balance. Now the bills and payroll are due and the question begs to be asked - “Where is the money to pay for all of this?” Having a professional keep track of this very important aspect of your business is an excellent way to keep this headache in check. They will not only keep track of the balance in your accounts, but will also be able to give you totals for each category of expense. Now you will know where your money is going and can adjust your spending accordingly.
The income statement gives you a record of revenues minus expenses. This is your profit. Profit can be positive or negative. Having a good income statement provides the information for your budgeting cycles, and the bottom line is your net worth. This will keep you informed on whether you are making progress in the right direction of building your business.
The balance sheet provides a look at the assets, liabilities, and owner's equity of your business. This is a comprehensive listing of all activities where assets (money or material) were used. This is information along with the income statement that will be required by lenders, investors or creditors to obtain financing if you need it for current operations or future growth.
Maintaining a Clean General Ledger
The general ledger contains the historical information needed to prepare the reports about the assets, liabilities, owners’ equity, revenues, and expenses of your business. It is the primary chart of accounts that all sub-accounts are derived from. If the general ledger has a discrepancy, none of the reports will be accurate. This will need to be accurate to prepare all of the local, state, federal taxing reports required by law.
These are just some of the accounting services that DOAAR can offer your business. When you put it all together, you will be saving time, effort, and money. A professional accounting firm will be able to provide the reports and services you need and assist with any financial issues that may come up during the course of business.