As an accountant, some of the most common questions we hear are, “How can you help me with my taxes?” “Is this deduction valid?”, “Oh, you’re good with money?”, and so much more. The truth is, the term accountant wears many hats. Not all accountants are tax accountant, or auditors. Some are consultants, are analyst, some are recruiters, and believe it or not, some are government officials. Accountants embody a wide breadth of knowledge that begins with assets and liabilities, but ends with an overall understanding of business processes and how they all come together to function as an organized and well-managed entity. Accountants are not number crunchers, nor are we only tax specialist. Here are a few myths about the benefits of having an accountant to help you support your small business:
Myth: “I will only need an accountant when the volume of my small business becomes too much for me to handle!”
Every business needs an accountant! A business should not be run based on the amount of cash in the bank, or lack there of. An accountant can help you keep track of your spending and to decide the extent to which you may want to report a loss on your business tax return. Having an accountant helps small business owners avoid putting receipts in a shoebox, and tallying them up at year-end. A great accountant will follow your taxes throughout the year, so that things are organized and ready to go when it is time to file your taxes.
Myth: “All Expenses paid for my business are paid out of my pocket.”
Bad Idea: All businesses need an account separate from personal funds in order to keep track of the true profit or loss your business is making. If you are using your own expenses, you are including your business income or loss and paying taxes twice on any income.
An accountant could assist you with separating personal from business expenses, and could help you account for the two, individually. Business bank accounts should be used to deposit revenue and pay bills. At any point, there is not enough cash to pay bills and you need to use personal funds, you should make your accountant aware, so that you can be reimbursed for those expenses on your tax return.
Myth: “Accounting services will cost me an arm and a leg!”
Wrong Again: You must choose the firm that fits the individual needs of your company and the services that you want. Picking an accountant because they have cheap rates is not very smart either. Check references, qualifications, and the services offered by your firm of choice.
J&F Advisor’s mission is to provide affordable rates to the businesses we service. We look at the needs of your company and customize a service package to help fit your budget. We wanted to create a firm that catered to small business and start-up companies and provide them with affordable accounting services. Our services are reliable, efficient, and invaluable.