As a small business owner looking to save costs, the idea of hiring a business accountant may not seem like a good one. Also, with the different accounting software available on the market today, you may feel like there is no need to spend money on hiring an accountant. However, even with a good knowledge of these various accounting software programs, your small business might miss out on the valuable financial insights that only a trained accountant can offer.
This brings us to the question- does your small business really need an accountant? And how much will it cost you to hire one? Read on to find out.
Does Your Small Business Need an Accountant?
The simple answer is yes! There are a lot of benefits to hiring an accountant for your small business. Some of the services an accountant can offer your small business include; business tax preparation, and planning, setting up bookkeeping and other accounting systems, maintenance of financial records, audits and generation of audited financial statements, creation of financial plans, preparation and filing of company taxes, and offering valuable business advice.
While you may be able to carry out some of the above tasks by yourself or with the help of accounting software, things like business taxes and audits may be too complex and time-consuming for you. There is also a high chance of you making mistakes and errors that could land your business in trouble with the law. Hiring an experienced certified accountant, like these ballarat accountants, for example, is the only sure-fire way to ensure that you avoid such problems, as they will be able to provide your business with structure as well as solutions to harmonise with your business wealth goals, overall improving the company for the better.
Furthermore, an accountant does a lot more than just help with physical accounting tasks; they can also help with business planning, growth, and expansion.
How Much Does it Cost to Hire an Accountant?
Now that we’ve established that your small business does need an accountant, it is time to answer the question of how much it will cost you to hire one.
Coming to a definitive number on how much hiring an “accountant Epsom” for a small business will cost can be difficult. A lot of factors will need to be considered. Some of those factors include;
How Your Books are Organised- Oftentimes, accountants will want to take a look at how your business’s financial records before giving you an estimate for their services. If your bookkeeping is poor, the accountant will like to charge more, considering how they will need to spend a considerable amount of time organizing your books and making sure your company’s financial outlook is well-prepped. However, if you already have some form of accounting system in place, the asking fees of the accountant may be reduced significantly.
The Location of Your Business- Most of the time, an accountant will need to come and look at your books in-office, and for accountants based further away, transportation costs will have to be added to your overall bill.
Scope of Services Required- The type of accounting services you need also impacts the cost of hiring an accountant. This means that the more services your business needs, the more the cost. For example, the cost of a simple bookkeeping service will definitely be lesser than that of a tax planning, filing, bookkeeping, and payroll service.
The Experience Level of the Accountant- Another important factor that can influence the cost of hiring an accountant is their skill and experience level. Hiring a fully trained and experienced accountant over an inexperienced one may cost more, but it is definitely a worthy investment.
The Size and Complexity of Your Business- The size and complexity of your business also play a major role in the cost of hiring an accountant. For smaller businesses, transactions, and financial processes are less complicated, so accounting fees will be cheaper. Larger businesses (especially ones with a complicated structure or multiple sites), on the other hand, require more time, work, and specialized accounting skills, which can lead to higher costs.
Hiring an accountant for your small business can be a big decision, and the different factors that come into play only make the decision even more difficult. However, the benefit your small business stands to gain from an accountant is one that you simply can not pass up.
The cost of hiring an accounting service may also vary from a little to a lot depending on factors like your business needs, business location, and the experience level of the accountant.