Only 30% of small business owners consider their accountants one of the most important advisors they have. Perhaps, those small business owners don't understand just how useful and necessary accounting services for consumer brands are.
An accountant is a small business owner's best friend. Because of their vast knowledge of accounting and finances, accountants have a unique insight into business rules and tricks that normal people don't have.
If you own a consumer brand, you need an accountant. Keep reading to figure out exactly why consumer brands can benefit from having an accountant. We'll share our top five reasons for getting an accountant for your consumer brand and let you know where you can find an accounting advisor.
1. Accountants Can Help Consumer Brands Get Deductions
When tax season rolls around, business owners everywhere race to find all of the deductibles that they can. The bad news is that it's usually too late to get all of the possible deductions by the time that taxes are due.
Luckily, accountants know how to plan ahead. They can help business owners identify potential deductions throughout the year. By addressing these throughout the year, business owners can more readily prepare for end-of-year claims.
Your accountant can help your consumer brand keep track of important data points. These include depreciation, out-of-pocket expenses, and home office supplies that could count towards deductions later on.
You don't want to miss out on any money that you could potentially save. Investing in an accountant will actually save you money over time since they can find all of these deductibles for you.
2. Accountants Can Help Consumer Brands Avoid Audits
Unfortunately, many consumer brands think that they don't need the help of an accountant until something has already gone wrong. However, this couldn't be further from the truth.
Hiring an accountant for year-round assistance could actually prevent needing to have an audit altogether.
Businesses are typically audited for one of the following reasons:
too many mistakes on tax forms
too many write-offs
too many charitable donations
An accountant can help you understand when you may be at risk for an audit. In fact, they can help you notice these kinds of errors and inconsistencies before someone else finds them.
An accountant will act as a partner and help care for your business. They're focused on saving you money and protecting your business.
3. Accountants Can Help Consumer Brands Save Time and Money
Because accountants can help your business sort out its finances, they save you both time and money. Even if you may think that accountants are too expensive, it's no secret that they can actually save you money over time.
Accountants save your business money by finding tax loopholes, budget adjustments, and more. Overall, this saved money can actually come out to be more than the fees for an accountant.
On top of saving money, you can save time. The accountant will be taking care of all financial matters for your small business, or at least those that you pay them to handle. In turn, this means that you don't have to do these tasks.
If anything, all you'll have to do is meet with your accountant periodically to go over the numbers. That's it.
Imagine how much time you'll have with an accountant by your side. You can devote more time to other business operations and have extra time for anything else you may want to do.
By having an accountant, you're really rewarding and helping yourself.
4. Accountants Can Help Consumer Brands Make Decisions
Many business owners confront an issue when it comes to making financial decisions. That issue is time.
A typical business owner can't make important financial decisions in the nick of time. They don't have enough experience or knowledge to do so.
Thankfully, accountants do have this experience and knowledge. They can help you make quick but well-informed decisions for your consumer brand. This saves you time and allows you to make time-sensitive decisions without much trouble at all.
Whether you're looking to make a big purchase, hire new employees, or apply for a loan, your accountant can help. In fact, having your accountant act as a financial advisor can ensure that your business is compliant with its budget.
Monitoring cash flow in real-time can also help your accountant make better decisions when it comes to your financial situations.
We recommend that you work collaboratively with your accountant. By doing this, you'll learn more about your business's financial situation and be able to make some decisions independently.
5. Accountants Can Help Consumer Brands Develop Plans
Because accountants are financially-centered, they can help your business plan for the future. Whether it's through your budget or your goals, your accountant can help you plan for the future.
While you're working with your accountant, you can pull reports from the past few months to evaluate how your business has been doing during different times of the year. Depending on the results, you can plan when to buy inventory and how much of it to buy.
In addition, you can plan for larger investments based on when your business is most successful. Your accountant can help you record and recognize these trends so that you can make the best financial decisions for your business.
Remember that your business' accountant is your friend. They are going to help you.
When you work with your accountant, make sure to work together and try to learn as you work with them. You could pick up some really helpful hints that will help you in the future.
Accounting Services for Consumer Brands
Consumer brands thrive with an accountant on their team. An accountant is a vital part of any successful business, whether you're considered a consumer brand or not.
Honestly, it's unlikely that your business will succeed without an accountant or some sort of financial advisor.
So, you need to look for accounting services if you don't have them already. Luckily, LN accounting offers all of the accounting services that your business could need.
Feel free to contact us if you have any questions.