Are you wondering if now’s the time to hire a small business accountant?
If you're asking yourself that question, the next thing on your mind is likely, "What is that going to cost me?"
A common frustration we hear a lot is "I feel like I pay so much money in taxes – way more than I should."
Many business owners feel this way but often don’t realize that their current approach could be costing them even more—whether through missed deductions, overpaying taxes, or costly financial mistakes.
In this article, we’ll show you how hiring a small business accountant can be an investment that saves you money in ways you might not expect.
What Is Your Current System Really Costing You?
If you're like many small business owners, you're already paying for something, whether it's an external service or you're doing it yourself. It may seem like you’re saving money, but what’s the real cost?
Even if you're doing your own books, it's still costing you. It's costing you time, effort, and most importantly, potentially missed opportunities. Are you sure everything is accurate? Are you certain you’re not overpaying? What happens if you’re hit with a penalty for non-compliance?
Many businesses don’t even realize how much they’re losing out on. For one client, it wasn’t until they sat down with an accountant that they realized they’d been overpaying taxes for years. After a review, they were able to claim back nearly half a million dollars.
Half a million!?!
When compared to what the accountant cost, it’s clear the real question isn’t “How much is an accountant going to cost me?” but rather, “How much is my current situation costing me?”
Hidden Costs You Might Be Overlooking
You might be thinking, “I’m already paying someone to handle this, or I’m doing it myself—why spend more?”
Just because someone is handling your books doesn't mean it's being done correctly. If things aren’t right, it can end up costing you way more in the long run.
Many small business owners think they’re saving money by managing their own finances or delegating the task to someone in-house. However, that approach often leads to hidden expenses. You might not notice the cost right away, but eventually, it catches up.
There’s the cost of 'fixing it' and the cost of missed opportunities.
For instance, even if you’re paying someone like an office manager to manage the books, it’s worth asking: Are they doing it right? You might be paying them $40,000 a year, but if they’re missing key details or making mistakes, the cost of fixing those issues could be far higher than what you’re currently spending.
Take the example of a client whose books were off by $250,000 because of errors in how expenses were recorded. They thought they had everything under control, but it turned out they were reporting income higher than necessary. A simple mistake like that can lead to massive overpayments to the IRS, and it often goes unnoticed.
Don’t Wait Until There’s a Crisis
A lot of small business owners put off hiring an accountant until they’re in a bind—whether it’s a big tax bill, IRS notice, or cash flow problem. But why wait for a crisis?
It’s easy to think, “I’ll deal with it when I need to,” but by then, the damage has often been done. A hefty tax bill, an IRS audit, or cash flow problems aren’t just financial headaches—they can derail your business growth.
Proactive vs. Reactive Advisory
You don’t want to wait until you have a crisis on your hands. This is an area where it’s better to be proactive than reactive.” Instead of waiting for an issue, having an accountant in place ensures you can stay ahead of problems and set your business up for success.
Whether you’re scaling up, planning for expansion, or just trying to get a handle on your financials, having the right systems in place can make all the difference.
What Could You Gain by Hiring an Accountant?
Hiring an accountant isn’t just about avoiding mistakes—it’s also about identifying opportunities for growth that you might not see on your own.
The benefits of working with a small business accountant go far beyond taxes and compliance. The right accountant helps you free up time to focus on what matters—growing your business.
One restaurant owner, for example, was able to purchase a second location because their accountant helped them get their financials in order. Had they not taken the time to sit down and get that help, they would’ve missed out on a significant opportunity for expansion.
It wouldn’t have been possible if they hadn’t slowed down and put these financial drivers in place. They’re going to be way more profitable at the second location because they know what they should be doing.
The Real Cost of Not Hiring an Accountant
It’s easy to focus on the price tag of an accountant, but here’s the reality: not having one might cost you a lot more.
In one case, a business that didn’t have proper accounting in place overpaid nearly $500,000 in taxes over several years. After hiring an accountant to review and amend their returns, they were able to recover that money. That’s the kind of savings that can far outweigh the relatively small annual cost of accounting services.
Every business is different, but you won’t know what you're missing until you sit down with an expert. They’ll be able to look at your tax structure, review your books, and make recommendations—often saving you much more than you spend on their services.
Start the Conversation—It Won’t Cost You
If you’re unsure whether you’re ready to hire an accountant, remember this: there’s absolutely no harm in having that conversation.
Worst case scenario? You walk away feeling great about how you’re handling your finances. Best case scenario? You discover opportunities to save money, grow your business, and avoid costly mistakes down the road.
Even if you think your business is too small or that you can’t afford an accountant, you might be surprised. A good small business accountant can provide you with resources and insights that help you get better, even if you decide not to work with them in the long term.
Don’t Wait for the Magic Eight Ball to Tell You What’s Next—Take Control of Your Finances Now
If you’re growing, if you’re frustrated, or if you’re even a little unsure about your financial situation, be proactive.
Talk to a small business accountant and find out how they can help you save money, achieve your goals, and set your business up for success.
Why leave it to chance?
Click the button below and talk with Patrick Accounting to see if we’re the right fit for your small business.
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