Most small business owners, by nature, are do it yourself types who prefer being involved in all of the aspects of their business, which includes doing the income tax returns of their company. Statistics reveal that the majority of business owners find it problematic to delegate tasks to outside consultants or even their own employees. As a result, they spend more of their time on non-core business activities. They should ask themselves if their small business requires hiring small business consulting services.
During the startup phase, a small business owner might find it necessary being a jack of all trades due to financial or other constraints. However, when their business grows, it is advantageous to pass on certain temporary tasks to experts of that field. They might find it difficult to cope up with the increasing complexities of tax code, information technology, along with the legal and regulatory aspects surrounding a business.
Bookkeeping and accounting are two of the commonest consulting activities that small businesses need. As with the other aspects of your business, when deciding whether to contract out a part or all of your accounting and bookkeeping duties, you should consider:
What is the worth of my time?
Can I perform a job as thoroughly as a professional in this field?
However, as your business expands, and you are hard pressed for time, it makes sense to allot some of these tasks to professionals. This apart, a majority of business owners find accounting/bookkeeping a tedious chore, more so if their business has high levels of transaction.
A good bookkeeper can, in a couple of hours per month, undertake the majority of your record keeping, which includes paying bills, submitting invoices, doing payroll, as well as preparing the accounts of the company for tax season.
A good accountant can:
Provide you financial advice necessary and navigate the maze of tax laws required to manage and grow your business; make recommendations that will help you lower your taxes; provide advise related to cutting business costs.
It is well worth your while to seek the services of a small business consultancy company, even if it is for a couple of hours per year.