“Accounting is the language of business.”
– Warren Buffet
It’s well known within the world of finance that having a good accountant handy is critical to keeping track of one’s finances, managing wealth, and saving the most amount of money for yourself and your business.
Still though, too many people believe that the need for an accountant is reserved solely for those who are already wealthy or run large corporations. In today’s economic climate, nothing could be further from the truth. With the uncertainty on the horizon, every dollar saved and properly spent counts.
Whether you’ve transitioned to working from home, started a new small business, or are an individual who simply wants to become a better steward of your finances, an accountant can play a vital role in contributing to one’s financial success. Let’s explore a few ways having a relationship with a good accountant can help you.
Tax Planning
Many people are already aware of the tremendous benefit an accountant can have during tax season in maximizing one’s return and savings. More than that though, a good accountant can consult you throughout the year on how to prepare for tax time because let’s face it, taxes are often one of the largest expenses a person or a business has.
By planning for your taxes in advance, you can systematically make purchases leading to larger deductions and take advantage of emerging credits that take effect by the passing of new laws so that when tax season does come around, you end up saving more than during a standard filing.
This is one of the best reasons to develop a personal relationship with an accountant you can call on anytime and a strategy many large corporations employ in saving on their taxes. It’s one of the many ways we at Sinn Accounting can consult and help you.
Business Structuring
Whether you’re a large multinational corporation, run an eCommerce store, or are a freelancer working from home, an accountant can teach you how to structure your organization to maximize your financial savings. A poorly structured business or improper choosing of ownership type for example (sole proprietorship, partnership, corporation, etc.), will have money leaking out of your accounts towards unnecessary expenses that could’ve been better spent or saved by you.
Other things to consider are setting up a proper payroll system, how to structure ones books for bookkeeping, or even how to set up different types of employees. These are a few ways involving and consulting with your accountant can help make sure your financial operations are optimized and running smoothly.
Budgeting
Often easier said than done, budgeting is one of those things that can make the difference in the time it takes to acquire a new asset, a new boat, or saving for your child’s college funds. Proper budgeting can make the difference between merely having a dream and having that dream turned into a reality by learning how to optimize your spending habits in order to reach your financial goals. Your accountant can walk you through the steps of how to balance your income and spending to help realize your financial goals, be it business or personal.
Planning For The Future
While this could fit under the category of budgeting, this category on its own comes with a different set of caveats. In this category, one of the biggest advantages can be the advice an accountant can give you whether business or personal.
If you’re a business, having an accountant render financial statements, projections, and pull reports from past months can help determine your future growth and determine the best timings for expansion, future investments, and other financial goals. These sorts of analysis will help determine the feasibility of one’s business ventures and long term sustainability.
Similarly for the individual, an accountant can advise on the best ways to plan for things such as retirement. An accountant is often available to set up one’s 401k’s, Roth-IRA’s, and give guidance on which plan is best depending on your individual needs and goals.
Tax Filing
Although this is usually the most obvious of them all, what’s generally not obvious is the difference an accountant can make versus filing yourself using a tax software. For many people doing simple filings under a W2, a guided software can be sufficient but what’s often lacking is the knowledge of tax laws, deductions, and credits that are available. Having an accountant that is informed and stays up to date is an invaluable asset in maximizing one’s return. Often times, the cost of the accountant is outweighed by the savings or return realized. This is the primary reason people turn to a specialist even when filing their own taxes.
You can find help with any of these services from our experts at Sinn Accounting. Contact us today and let us help you get your finances in order.
