You are running your business and doing a great job at staying on top of your bookkeeping, not to mention you are saving money by not hiring help. Win, win right? Think again. Since you have been trying to save a buck by going the DIY (do it yourself) route, your books may be all over the place. You could spend several hours, perhaps days navigating PPP loans, running payroll, and filing taxes even if you were organized. As a busy business owner, this is the last thing you want to be spending your precious time doing. You could be doing anything else. Let’s brainstorm some alternatives. Mountain biking? Playing with your kids? Scrolling Instagram? Working on growing your business? Watching paint dry (It’s got to be less painful than bookkeeping, right?) The list is endless and you think to yourself, why didn’t I hire a professional?
filing your own business taxes may be in your ‘zone of competence’ but it is an accountant’s ‘zone of genius’. Get back to spending time in your ‘zone of genius’ which is running your small business.
Let’s run through some clarity points on how hiring an accountant will save you time and money.
Unclaimed Business Deductions
It’s time to stop leaving money on the table! There are numerous deductions out there for small businesses and it can be hard to recognize them if your job doesn’t have the job title “CPA” in it. These range from health insurance, IRAs, travel expenses, the way your business is formed, and more. These deduction rules are also constantly changing. For example, as an S-corporation business owner, you can now start an IRA to offset taxes. You can also plan a vacation around a work trip and write off part of your expenses. Who doesn’t want to sip margaritas on the beach knowing a portion of your trip is paid for? Your job is not to stay on top of the constant change in tax deductions, your job is to drink margaritas and run your business.
Paying yourself and your employees is complicated especially if you have remote workers working in multiple states. Different states have different rules and once you start attracting talent across state lines, your payroll gets more difficult. There are also other details such as officer payroll recommendations, payroll schedules to stay compliant, and monthly premiums on monthly checks. This leaves a lot of room for error. The tax man thrives on error and running payroll smoothly is important in the case of the dreaded audit.
For some, nightmares may consist of being late for a flight, but for small business owners, that nightmare may be the IRS knocking on your door demanding thousands of dollars in taxes. As tight as you run your ship, mistakes happen and in the case of an audit, you want to be as prepared as possible. There are several details that arise while owning a small business and by hiring a professional you can rest easy that someone has your back on compliance. Turn those nightmares into peace of mind.
Navigating PPP loans
There’s no denying that businesses with good accounting and tight payroll practices received PPP (payroll payment protection) loans with more ease than businesses that did not have a professional tax and payroll service. The PPP loan application process was a giant headache but with the combination of professional accounting and payroll, small business owners were able to get their applications submitted in time to receive the funds. The application was multiple pages, but the fields were easy to fill in if you had an accounting and payroll service, which leads us to the importance of having a smoother business process.
Imagine getting a full, detailed vision of what you’re spending and earning every month into your inbox. Clarity! As much as you crunch numbers on your excel spreadsheet, keeping data up to date is a chore and takes up valuable time. Luckily, there are professionals for that. This will give you full transparency on how much your business profits and expenses are. Rest assured that the $30 filet you bought for your lunch meeting is going on your monthly report. But also rest assured that your accountant knows you can only write off 50% of that lunch.
DIY is great for your dog’s Halloween costume, presents for Grandma, and that amazing quarantine banana bread you made but may not be the best approach for your business’s accounting. You could be missing out on thousands of dollars, multiple hours of your time, and peace of mind knowing that a professional is handling the books of one of your most precious assets (your business). Filing your own business taxes may be in your ‘zone of competence’ but it is an accountant’s ‘zone of genius’. Get back to spending time in your ‘zone of genius’ which is running your small business.
At Singletrack Accounting, we know how valuable your time and hard earned money is. We are here to help you. Reach out for a free consultation.