This tax season, accountants should be making the case to their small business clients that it is crucial to their survival to outsource more of their finances. A recent survey by AccountantsWorld found that more than 50 percent of small business owners spend less than 10 hours a month on accounting work.
While 10 hours a month may be all a small business owner has time for, it may not be enough to sustain their business. According to the U.S. Bureau of Labor Statistics, only about half of small businesses survive through their first five years. With nearly half of the small businesses spending less than 10 hours on accounting per month, devoting more attention to accounting could be a prudent allocation of resources to increase the chances of success.
Many business owners don’t necessarily understand the meaning of the numbers that are fueling their companies. Having a better understanding of accounting can help small business owners better manage their businesses.
Here are some tips for how smaller business owners can best work with accountants to maximize their chances of success.