Written by Tina Martin —
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How a Professional Accountant Can Support Your Bar’s Success
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As a small business owner, you enjoy a great deal of freedom. You get to be your own boss while guiding your bar on the path to success. While it can be tempting to do it all yourself when you’re starting a business, there are certain tasks worth outsourcing, especially when it comes to the financial health of your business. Accounting is one task worth entrusting to a professional. Hiring an accounting consultancy can save you time, energy, and money.
Provide information about tax reporting requirements for different business entities
When you’re first establishing your bar business, you may want to register it as a formal legal entity. An accountant can explain the state and federal tax implications of the different types of legal entities. For example, a limited liability company, or LLC, offers tax benefits and helps to protect your personal liability. The requirements for LLC formation vary between states, so check your local guidelines to see what’s needed.
Set up organized accounting, bookkeeping, and tax filing procedures
Once you have your business established, an accountant can help you set up streamlined bookkeeping processes. This will help you stay on top of your bar’s money management, supporting your long-term success. Plus, you don’t want disorganized bookkeeping to result in errors or lost financial paperwork, which can cause big problems when tax filing season rolls around. Don’t underestimate the importance of being prepared for audits, which includes providing organized paperwork for all audited years.
Work with your accountant to organize payroll
Payroll is one of the biggest stressors small business owners face. And manually tracking and administering payroll is a recipe for disaster given the potential for costly mistakes. This is why most SBOs turn to an accountant to help manage payroll. However, while your accountant will help keep the wheels turning, they’ll likely require you to set up payroll through a software system like QuickBooks. Fortunately, this isn’t complicated; plus, this payroll platform offers a wealth of tools for accounting that ensure accuracy and timeliness in addition to offering features like automation and direct deposit.
Figure out what business costs you may be able to expense
An accountant can further help you figure out what types of business expenses may qualify as tax write-offs. As a service-based business, you may be able to deduct equipment, staffing costs, alcohol and food costs, and more. An accountant can help make sure you are in compliance with write-off requirements, minimizing the chances of an Internal Revenue Service audit.
Get regular financial reporting to assess your business health
An accountant can further provide information about your bar’s financial health. According to Harvard Business School, key paperwork like balance sheets and income statements show how your business is faring financially. You can use this info to make business decisions, like whether you’re really in a position to scale up. Mario Peshev reveals the importance of managing risk while scaling up. For example, you don’t want to spend more than you should to take steps like adding new employees.
Gain more time to focus on your core business competencies
Finally, having an accountant handle bookkeeping, payroll, budgeting, accounting strategy, and tax preparation takes a burden off your shoulders. With someone else doing these duties, you don’t have to worry about them. We Work explains that this kind of outsourcing frees up your time to concentrate on other critical elements of running your bar. You can then also do more of the tasks that you enjoy doing, which will ultimately help your business thrive. According to the University of Southern California, liking your job is a key to success.
As the above guide has made clear, an accountant can be a helpful addition to your bar business. With the support of an experienced professional, you can focus on the parts of your business that you truly love.