Accounting plays a significant role in the daily lives of SMBs. Considering small businesses have little Money to begin with, they have to spend it wisely. After all, one late fee or a penalty charge from the bank could put the whole firm in jeopardy. It’s for this reason that bosses and CEOs put lots of emphasis on every accounting tale they hear. Some even create policies based on the stories making the rumor mill. Of course, myths are dangerous and do more damage than the truth which is why they need avoiding.
To help you sort out the truth from lies, the following are the tall tales to swerve.
Hiring An Accountant Avoids AuditsNo, that is not the case. The truth is that having a money professional on your side makes an audit less hazardous. If they are worth the money, they should keep detailed records and receipts which stop the IRS from getting on your back. Also, with their knowledge, they should understand where to cut and where to file for expenses without getting into trouble. Still, the Internal Revenue Service may want to take a closer look at the books, especially if you’re making money in the first year. With that in mind, it’s essential to maintain proof of purchases and hand them over to your bookkeeper.
Bookkeepers Are ExpensiveThe truth is that they are quite affordable. There are numerous reasons, one being accredited experts offer online services free of charge or at a small rate. This paycheck stub template is a prime example of pro bono accountants at work. More than that, though, outsourcing often cuts costs and improves quality within the sector. For one thing, you pass responsibility to people who know what they are doing rather than blindly trying to do it yourself. Also, they don’t just save but make money for companies. So, even if the expense is high, it’s nothing compared to the green they get coming in on a monthly basis.
Small Companies Are Small FryOn the contrary, SMBs tend to get a close examination from the authorities more often. Why? Well, some people would say it’s because big corporations make tons of money and have the local authorities in the pockets. Whether that is true is up for debate, but what isn’t arguable is that large firms have the best people on their payroll. So, it is safe to assume that the tax office places more faith in their records. Plus, a government can make as much money by cracking down on a small offender as chasing big game as they’re less likely to have an accountant.
It’s All About The MoneyIn fact, accountants also save their clients time because they take the burden of the responsibility. Cash may seem like the be all and end all, yet that isn’t the case. In fact, time is just as crucial because it helps to increase efficiency and output as you can focus on other areas of the business.
The trick, as always, is not to believe everything you read or hear.