By Carol Tice
It is so important for small businesses to develop an apt accountant staff. Knowledgeable accountants will be able to improve the financials of a company and help business owners make better decisions.
For example, a highly qualified accountant will know the best inventory management and selection method. A good accountant will be able to consult managers regarding decisions that might have tax consequences, as well as choices about employee benefit changes, equipment leasing or purchasing, and property acquisition.
What to Look For
In order to get a high-powered accountant, small business owners should inquire about:
Realize the Benefits
Once the decision is made, the small business should provide all historical financial information to the accountant, along with exact details of current operations and forecasted business ventures.
After providing all of the company's information, a small business can begin to realize the benefits of an accountant’s expertise. For instance, they can advise if a business would reap additional tax benefits if business income was recorded on a cash or accrual basis.
An accountant can provide advice as to whether inventory should be accounted for on a last-in-first-out (LIFO) basis or first-in-first-out (FIFO). Depending on their recommendation, a small business may change the current inventory management method to better suit the business.
When personnel decisions must be made, an accountant can advise on particular categories of workers whose employment might bring tax advantages. Veterans and the disabled, for instance, would fit this category.
Taxes Accountants can set up systems to ensure businesses are deducting and properly paying payroll, unemployment, workers’ compensation, and most importantly, taxes. A good accountant can help navigate complex tax implications involved in creating a company health or retirement plan.
U.S. tax laws are some of the most complicated around the world. The tax code, which changes often, is literally thousands of pages.
One of the biggest advantages of having a proficient accounting staff relates to new tax laws passed at year end that apply retroactively to the entire year. A good accounting staff will stay up-to-date on these changes, and they can massage financial statements to reflect favorable numbers
Is your accounting staff doing all it can for your small business? An accountant should help you make better choices regarding tax filing, inventory management, hiring, and a wealth of other financial decisions.