Carwash owners know they need to keep track of financial records and file their taxes on time, but hiring a good accountant goes further than that. While software can be easy to use, it shouldn’t be the only system a business relies upon, according to Entrepreneur magazine.
The right accountant possesses a wealth of knowledge to allow him or her to serve as “your company’s financial partner for life.” The article shares four areas of expertise covered by general accounting practices.
- Business advisory services. Accountants are extremely acquainted with your businesses. Since they know about all the financial aspects of your wash, including your business environment and tax situation, they can offer lots of advice, notes the article. This advice can range from business planning to personal financial planning. Take advantage of the differing perspective they can offer you.
- Accounting and record-keeping. Since the IRS ultimately holds business owners responsible for book-keeping, many owners manage these records themselves, reports the article. Accountants can help by setting up the systems and showing owners how to use them correctly. By implementing these systems owners can easily monitor profitability, budgets, sales and expenses as well as accounting fees.
- Tax advice. The article states this “comes in two forms: tax compliance and tax planning. Planning refers to reducing your overall tax burden; compliance refers to obeying the tax laws.”
- Auditing. Banks often require audits before they will lend money to businesses, explains the article. Many levels of the practice exist, ranging from preparing financial statements to a more intensive process “where the accountant or other third party gives assurance that a company’s financial information is accurate.”
With so many details involved with the financial aspect of a business, hiring a professional is almost essential to ensure accurate record-keeping and a well-run, profitable business.
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