The Differences Between Accountants and Financial Planners

Managing your money can be fairly straightforward, but for small business owners, it can become quite complicated. Hiring an accountant, financial planner, or both is a great way to make sure your business' finances are in order. 

But what is the difference between an accountant and a financial planner?
Accountants are often involved in tax preparation and returns. In the past 100 years, the number of pages in the Internal Revenue Service (IRS) tax code has increased 16,775%. With so many complicated codes and situations to remember, it is advisable to hire a tax accountant. Of course, accountants offer so many services beyond just filing tax returns. A qualified accountant can draft financial statements, advise you about depreciation of assets, and give recommendations about business structure.

Accountants may also provide bookkeeping services to make sure everything is accounted for, reducing your chance of an audit. If you are audited by the IRS, an accountant will represent you and help keep you from making any costly mistakes.
Financial planners often work together with an accountant in order to lower the company's financial risk. By focusing on investments and budgeting, financial planners help companies consolidate debt and manage their cash flow for increased revenue. A financial planner may also manage insurance and estate planning, as well as give specific advice about company structure and wealth accumulation.

Accountants and financial planners both make managing your money easier, and are focused on helping the business succeed financially. While accountants attempt to increase a company's capital by decreasing tax liability, financial planners view strategic investments as the way to go. By working with an accountant and a financial planner, you get the best of both worlds. Managing your money with the help of an accountant and a financial planner is a great way to build a savings and stay on the IRS' good side.

Two Important Rules To Managing Small Business Finances

It's a new year and that means startup businesses and small businesses should carefully consider some important questions -- questions like, is my business fiscally sound? If the answer is no or even a slightly hesitant maybe, business owners need to carefully reevaluate their expenses and profits, and do something about it. Here are some of the best small business accounting tips to help you get back on track.




Consider Every Single Detail 

What are the best small business accounting tips? Small businesses, entrepreneurs, and startup businesses need to carefully comb through all of the details. An accountant for small businesses, for example, can help with company tax preparation, financial risk management, record keeping, credit reporting, and keeping close tabs on cash and revenue inflow and outflow. An accountant or tax services professional can also help when things have gone awry. It is a wise decision, for example, to hire an accountant to keep accurate records in the event of an audit, for example. An accountant can also help rearrange and consolidate debts if necessary.

Ask For Help 

Nearly all people associate some of the world's richest entrepreneurs and business owners with independence. While that more or less holds true, there is one very important trait that is infinitely more helpful than being independent, and that trait is the drive to succeed. If you are having financial troubles or even contending with so-so profits only, drive can help get you to the next level. The best business owners seize any and all opportunities for funding, for example. One of the best small business accounting tips is to ask for help when you need it. Don't let your company go under without putting up a fight. Angel investors, small business loans, and organizations for various aspiring entrepreneurs and small businesses can help you get on your feet again.

It is time to take a good look at your business or startup, and make sure you are on track. The best things to do if your business -- and especially its financials -- need a little work is to consider every angle, and seize all opportunities to get back in the green, even if that means asking for help.