Handling your finances can be hard, especially for small business owners – and that’s why it’s important to find an accountant who can help you understand the ins and outs. But what does your accountant DO?
Does looking at your books make your head spin? Can you keep track of the numbers, but you aren’t really sure what they all mean or what context you should be using to examine them?
That’s okay! It’s not your expertise – but it is your accountant’s. Your accountant’s job is to make sure your numbers are accurate, timely, and useful.
Quality numbers are essential. The status of your accounting effects everything from compliance filings to how much you owe in taxes. Having an accountant ensures that you’re not paying late filing fees or penalties. They also make sure that you’re taking advantage of all the tax credits, deductions, and strategies that can save you money.
Keeps Up With Updates
Things in the finance world can change quickly. Your accountant’s job is to keep up with those changes and filter out all the things that don’t pertain to you. Not only does your accountant keep up with tax and accounting changes, but they have the knowledge to know how those changes are going to effect your specific needs. Then they help you apply those changes to your tax planning and strategy so that you’re in the best tax position you can be.
If you approach tax time without a proactive plan or strategy, you won’t be happy with the results. That’s why you need tax planning – and why tax planning is one of the most important things your accountant can do with you.
During tax planning, your accountant will help you strategize for the year – but the choices you make for each year have a ripple effect through your tax future. Your accountant will help you figure out your overall tax strategy in addition to more specific needs like entity set up, officer compensation or guaranteed payments, timing of large purchases, and financing. Specific long term planning includes things like retirement plan options and stock option planning.
Your Accountant Does A Lot, Actually
Sometimes it may feel like what your accountant does is a mystery, but in actuality, you just aren’t seeing the majority of their work. It isn’t just taxes – it’s a holistic approach to your financial life.
If you want to know a little more about how your Encurio accountants work, you can check out our blog on the eight ways to know if we’re the right accountant for you. Or if you want to dive straight in, try setting a meeting with us here.