How Much Time Can An Accountant Save Your Business?
May 4, 2021
Time Is Money
If you’re running a small business, especially at the start, every dollar counts. You need money to keep your business afloat. A lot of business owners think that means they should save money at every turn, but sometimes that’s not in your favor. For example, trying to save money by doing your own book-keeping can cost you more than you save. Why? Because time is money, and an accountant can save you a lot of time.
How Many Hours Do You Spend on Bookkeeping?
According to Dragon Financial, an accounting company in Portland, Oregon, bookkeeping can take up a lot of time. Just managing a single business’s finances can take anywhere from 20 to 80 hours per year. When you factor in managing payroll, that can add anywhere from 1 to 10 hours a month to the job, depending on the number of employees. All that adds up. Just how much you spend overall will vary depending on your own proficiency at math, but it’s still quite a lot.
Is That The Best Way To Spend Your Time?
So, you decided to do the bookkeeping yourself to save money. This saves you a little money, yes, but consider this? How much time is that taking out of your work? How much more money could your business be making if you spent that time focused on making money? And if you don’t want to take that time out of your work day, when are you going to do it? After work? But then when are you going to enjoy time with your family and your hobbies? Having time to yourself isn’t just fun, it’s a necessity. Without time off, the stress never gets relieved and this has detrimental effects on your health.
So, what are you supposed to do?
An Accountant Solves The Problem
Since you can’t ignore your business’s finances, but doing it yourself takes time away from either your business, or your personal life, hiring an accountant solves the problem. A third party accountant can take on the matter of managing your businesses finances and payroll, freeing up a lot of hours to spend in better ways. As your business grows, you may reach a point where you can even afford an accounting team specifically for your business, but at the start, having even just a single accountant more than makes up for the cost with the time it frees up.
That’s Not All
There are more benefits to hiring an accountant. A third-party accountant will have a lot of specialized training you probably don’t. They’ll know what tools and software are the most useful to keeping your finances organized and in order. They know how to keep up with the ever-changing tax codes to keep your business out of trouble while also finding you the tax breaks that save you the most money. You don’t have to spend any time training them because they’ll have already trained themselves (which also saves you time). Not having to worry about your finances is also a huge stress relief, and in the fast-paced modern world we live in, you can never get enough of that!
Accountants Are A Boon For Small and Start-Up Businesses
If you’re a small business, or are starting up a new business, hiring an accountant can be the smartest move. You may think doing it yourself will save money, but the hours it takes away from making money will most likely add up to more money lost in the long run. Not to mention the risk you run of making mistakes and facing fines and legal troubles with the IRS. Nobody wants trouble with the IRS.
So, if you’re running a small business, hiring an accountant is probably the best thing you can do to help keep your business in the green.