Did you know? Business failure has been taking place since the 1990s. According to the US Bureau of Labor Statistics, the following stats show the percentage of failed businesses from their time of establishment.
- 20% of businesses fail in the first 2 years
- 45% of businesses fail within 5 years
- 60% of businesses fail within 10 years
- 25% of businesses are stable enough to survive 15 years or more.
One of the main reasons for their failure is poor financial management and not hiring an accountant. Another reason is handling finances manually, which causes inaccurate results preventing a successful business venture.
So, if you are a small or mid-level business, this is what you should do for your long-term business tenure. Hire a professional from an accounting service provider who can take care of all your finance, budget, assets, and capital required to run a successful business.
It may feel insecure letting someone else know how you handle your business finances. But here’s a thing: hiring an accountant will help you achieve your goals and set you up for long-term success.
Here are 8 reasons you should hire professional accounting services for your business.
Reason-1: Evaluate the performance of a business
The financial statements of your business show how it has been performing in terms of finance. It helps in knowing your spendings, savings, debts, credit, and all the financial activities which can help increase your business.
When you hire a professional, they don’t only clean or update records to help you keep track of assets, ventures, or gross margin. But they also help you compare how your business is improving in performance and made progress by seeing last year’s stats.
Reason-2: Budget planning
For every business thriving to move ahead, budget is a crucial factor. It helps develop strategies, save investment and capital, and quote any expense exceeding the budgeted amount.
If you want to release a budget for your business, you need some previous records. It is only possible if record maintenance is done properly through accounting because it forms the root for planning and budget finalizing.
Reason-3: Avoid an audit
A compelling reason to hire an accountant is to avoid an audit of the company. Unfortunately, many businesses hire a skilled accountant when the year ends or the audit company is about to visit.
Managing your financial statements throughout the year gets hard, which becomes hectic while collecting all of them simultaneously. If you hire a professional from an accounting service from the beginning, they’ll handle all your financial paperwork, giving you peace of mind from your financial documentation.
While you take care of your business, your expert accountant takes care of all the income statements, balance sheets, and cash flows. In addition, they help maintain the documentation till the end of the year, giving you the confidence to submit all the documents for your company’s audit.
Reason-4: Reduce your workload
Once your business is stable, you need to run day-to-day operations rather than being occupied with compliance, tax, or bookkeeping. Similarly, as the business finances become more extended, you’ll need to hire a specialist to take charge of your financial issues.
In such a situation, hiring an expert from the best accounting services provider is all you need. They have complete knowledge of managing your operation through process improvements, refining your financial and tax obligations, and making you aware of new tech-savvy tools that can save your time and money.
Reason-5: Improve your payroll process
A business is successful due to its hard-working and faithful employees. And when you have employees, you need to operate their payroll effectively and in line with payroll regulations.
If the payroll gets delayed, you may end up dealing with
- Fines
- Unhappy employees
- Tax bills
Payroll concession is crucial for running a business. However, you need to hire an accountant proficient with payroll services to keep your payroll on track.
It helps to analyze real-time information, generate payroll records for your employees, and submit reports to revenue and customs.
If you are unsure how the payroll process actually works, it’s time to get in contact with a renowned accounting service in Ottawa.
Reason-6: Prevention and detection of fraud
No matter the size of your business or corporation, the chances of fraud still remain. The only way to eradicate fraud is through good internal control. How can you get good internal control for your business?
Simply through proper records of events that have taken place. You can maintain and keep track of all the transactions effectively and efficiently by hiring an experienced accountant.
Reason-7: Stay ahead of trends and regulations
In today’s tech-savvy and revolutionized world, it’s hard to keep up with the instantly changing finance policies. For that, you need to hire a specialist.
A professional accountant makes you aware of the emerging trends, latest software, and changes in the rules and regulations by the finance government. In addition, they know the vital point which a business faces when it’s at a development stage.
By using expert analytics, forecasting and skills, an ambitious accountant will help you visualize the major issues of your business.
To complete your evaluation process according to the industry benchmark, you require an accountant. Their expertise helps your business grow with an effective financial forecast, smart solutions, growth management tools, and a predictive performance report.
Reason-8: Transparency with stakeholders
Most stakeholders decide to invest in your business by studying your financial statements. Therefore, it must be straightforward and easy to understand. The investors understand your business with a glance at the financial statement.
Some of the business factors that provide vital information to your business’s stakeholders and investors include:
- Profit before interest and tax
- Profit after tax
- Capital amount utilization
- Depreciation
- Amortization
All the terms in the financial statement should be accurate, as a slight difference can make a huge difference. Therefore, transparency with your stakeholders is a pivotal factor while representing your financial information. It can be only achieved if the transactions are recorded and maintained through an accounting system.
Are you looking for a trusted accounting firm in Ottawa?
Every business is different in size and financial state. As a result, it becomes hard to manage your business and financial conditions together. For that, GJS Business Financial Services offers a wide range of accounting services to keep you stress-free from your financial condition, giving you the ultimate peace of mind.
We help companies with all the accounting services required to run their finances accurately and efficiently, from new business to mid-level and large enterprises. It helps our clients manage their workflow, maximize their profit benefits, and stay organized for better decision-making.
Conclusion:
If you are running a business or corporation, you need to adapt accounting techniques for a stable and successful business.
While your business is in a development state, you need assistance from an expert accounting service. They help you maintain your record of sales, investments, debit and credit expenditure, accounts receivable and payable, and much more.
When you hire a professional for your company’s financial condition, you can take care of the things secondary to your accounts. With an expert handling your financial needs, you can run your business seamlessly.
Learn more about accounting services and how they can benefit your business or corporation at https://gjsfinancialservices.ca/.
