In the tumultuous economic climate of 2023, businesses are looking for more ways than ever to save. These days, small business owners prioritize “watching costs,” which, practically, means upgrading who is doing their bookkeeping. For them, this can even look like hiring an accounting professional for the first time. This is a stellar opportunity for accounting professionals looking to add new clients.
We sat down with Kurt Kunselman, co-founder and CEO of AccountingSuite™, to discuss just how important an accountant can be to businesses. As he reflects on interactions with business owners throughout his career, Kurt notes, “The first question I always ask when hearing about someone’s new business is: ‘Who is managing the financials?’” He chuckles, “I can always tell if a person is starting their first or their fiftieth business by whether or not they have an accountant.”
According to a Digital.com article and survey, 65% of U.S. small businesses “say it’s ‘very likely’ or ‘likely’ they’ll permanently close if inflation continues at its current rate.” As companies everywhere brace for the possibility of a recession, it may seem contradictory for a business to shell out valuable dollars for the additional expense of an accountant. However, this may be the act that provides a business the relief it needs in desperate times. Kurt has astutely coined 2023 as the “Year of the Skilled Advisor,” a nod to the trending theme of saving money that many companies desperately need assistance with.
Here are just a few ways accounting professionals help small businesses save money.
Accountants Simplify the Small Business Tax Process
Today’s gig economy is propelled by both necessity and the personalities of the next generation. For starters, the rising cost of living makes the linear “single career dream” a fading reality. In tandem, today’s youth are innovative and flighty, with a tendency to support their lifestyles via multiple streams of income, as opposed to the traditionally favored “9 to 5” of their predecessors. The result? More short-term and part-time contracts mean more 1099 employees. This necessitates a very different approach come tax season (think: more work). Kurt well understands the contractor’s struggle, having worked as a 1099 employee for over 11 years. He says, “If I could do it over, I would have found an accountant.”
As you market to small business owners, be sure to let them know ways you can help during tax season:
- Help to consolidate and track annual expenses
- Know what tax deductions they qualify for
- Manage 1099 contractors
Federal law states that any earnings of $600 or more require a 1099 to be filed for the previous tax year. Any contractor knows that tax season is a dreaded time of year for many reasons, the most important being that their earnings are taxable, up to 15.3%. This might not sound like much, but as you know, that percentage works itself out to be a pretty penny over a year. What’s more, in a practical sense, business owners lose valuable billable hours when managing their own taxes and finances, which can hurt their company in the long run. As an accounting professional, you help keep the anxiety at bay when April comes around, while also ensuring SMBs receive their highest refund possible.
Accountants are an Asset to eCommerce Businesses
Did you know that nearly 25% of online orders are fulfilled through dropshipping? It’s no secret that many small business owners are participating in this model of using third-party sourcing for both inventory and shipping. The current market stats predict that dropshipping is set to triple in revenue, from 128.6 billion in 2020 to an astounding 475.10 billion by 2026. Kurt shares about a client who worked in the eCommerce space. He notes that this person was initially not receptive to hiring an accounting professional. However, as his business grew, he became willing to spend $500/mo to pay for a metrics dashboard to ensure maximum profitability.
Accountants Help Business Owners Spend More Time Doing What They Love
When business owners choose to invest in your services, they are giving both time and money back to their business. As you network with potential clients, be sure to let them know that you are prepared to carry the responsibility of “watching costs,” leaving more time for them to spend doing what they love. This means that, despite an unfavorable economic climate, they can continue to focus on nurturing the ethos of their brand, trusting that you will provide the support and guidance you need to make critical financial decisions. Kurt concludes, “When businesses hire an accounting professional, it is an investment into the future of their business.”
At AccountingSuite™, we support our Accounting Partners through our “Find an Advisor” page, a geographic digital directory that pairs business owners with a financial advisor who is right for them. This directory of “RockStars” helps those seeking an accounting professional find a firm that is right for their personalized business goals.