First-time independent agents are notorious for insisting on doing everything themselves. When money is tight – and money is always tight in the beginning – the last thing you want to do is add another person to your payroll or outsource some of your day-to-day tasks. But, with the first quarterly estimated tax deadline looming over your head, you might be more open to the idea of outsourcing your accounting.
The first tax payments for small business owners are due Monday, April 18th, 2016
Hiring a full-time accountant might seem like a waste of money. After all, how hard can it be to keep track of what is coming in, and what is going out? But, even if you have a basic comprehension of business finances, and you’ve always been diligent with your personal finances, that doesn’t mean that you are qualified to keep your own books. First of all, it would take too much of your time. You’re a business owner now, remember, not an accountant.
There are a right and a wrong way to spend money
We know it’s so tempting to do it all yourself in the name of saving money, but this is just going to cost you in the long run when you make mistakes. Accounting mistakes can be costly, and more often than not they will open up the door for the IRS to start poking around. Before you know it, simply outsourcing your accounting to an experienced accounting firm has now turned into needing to hire a tax attorney as well to get you through an audit.
If you want to succeed, you need to make sure all your ducks are in a row. And one of those ducks should be an accountant!
Outsourcing your accounting vs. hiring an accountant
When you hire an accountant; you only get one accountant. When you outsource your accounting to an accounting firm, you get many accountants and bookkeepers all with various degrees and areas of expertise to make sure you have a competent team to assist.
An accounting firm can help you in the startup process of your agency. They can help you write up your business plan and analysing your finances.
An accounting firm already has all the software you need to get a good accounting system in place, instead of you having to figure all of that out on your own.
And, once your agency is up and running, your accounting firm will help you keep track of income, expenses, transportation, payroll, and get you safely, and legally, through every tax deadline.
As your business grows; your accounting firm can help you with your future projection and help advise you on your next move.
There are many benefits to outsourcing your accounting. Even if you don’t think you need one full time, outsourcing allows you to hire the firm for the periods when you feel you need them the most (hint: your taxes). And as you grow, you can start to build on your relationship.
For more tips on what you can outsource and how to start an independent agency in Colorado, join AAI and get access to exclusive business seminars and business advice from a large network of successful independent agents.