Why Your Business Doesn’t Have To Account For An Accountant

A small to medium-sized business will hear the same advice over and over: get an accountant. According to conventional wisdom, they can cut the tax bill, pay bills when the firm is ready, and get the finances in order. On the face of it, it appears to be a great piece of business for the company. However, there is one catch and it is the cost. Accountants aren’t cheap, and this is a problem for SMEs as you have to keep your expenses low. But, you can’t strike your accountant from the wage bill, can you? The answer is yes you can, and below are the reasons why.

Advanced Technology

A trait of modern businesses is the incorporation of technology. Nowadays, companies use the right software programs to cut costs and maintain a steady output. After all, it only takes one person to man a machine, and the software is just as capable as two or three employees. The good news is that this is no different with accounting. Thanks to a resource like Adra account reconciliations, the program will show you where to slash costs. All you have to do is play around with the settings to understand better how it works.

Basic Bookkeeping

Major firms need to know how to cut their tax bill legally because it costs them millions. You, on the other hand, will have a smaller amount to deal with. Although it is no less important to you, it doesn’t necessarily require an expert accountant. The reason is that small amounts are easy to manage with basic bookkeeping skills. Simply keeping track of payments made by the company and making copies is an excellent way to negate an accountant. The same goes for expenses paid by employees on the firm’s behalf.

Read Up On Tax

Your tax bill might make you think an accountant is essential, but don’t let the big bad wolf scare you. Sure, the inner workings of the tax system are complicated and difficult to understand. However, you don’t need to worry about the sections and subsections which are no concern to the company. In general, you need to know about business tax. For example, do you know how much you can earn before you start paying tax? What about expenses that you can claim on your tax return? These are simple pieces of information which will slash your bill by a significant amount.

Part-Time Pros

With all of the above, there is no reason to have a full-time accountant. Still, that doesn’t mean a part-time one can’t come in handy. For those of you that think it is a cop-out, you are mistaken. There is nothing wrong with asking an expert to oversee your processes and point out any errors. Plus, because they are part-time, the cost is much lower than normal. As a result, the company can kill two birds with one stone.

In anyone’s book, that is a savvy business decision that will benefit the company as a whole.