Many entrepreneurs have too much on their plate and simply don't have enough time to sit down and draft an accurate budget, and because of this they put off other essential processes. However, these business owners may not realize that without a well-thought out budget, they will not have an accurate account of their business-critical data, such as available capital or fixed costs and revenue.

According to a recent survey conducted by small business insurer Hiscox, only 26 percent of small business owners employ full- or part-time legal and/or accounting help. These stats suggest that entrepreneurs just heap accounting and budgeting on to their pile of tasks they have assigned to themselves. 

"Entrepreneurs truly have to be a 'jack of all trades,' yet a clear skills gap exists between their limited knowledge in certain areas and what they are actually willing to invest in," said Kevin Kerridge, small business insurance expert at Hiscox.

The survey found 36 percent of small business owners admit to lacking knowledge about taxes, while only 8 percent have a full-time accountant on staff. Accountants have the skills to not only help with taxes and budgeting, but they can also help business owners develop financial forecasting models that provide insight into where a company is expected to be months down the line..

"It is important that small business owners recognize where professional expertise is imperative," said Kerridge. "Hiring or contracting support for technical sides of running a business can save them money in the long run."

Having a clear and developed idea of their business' long-term financial standing can save many entrepreneurs from potential legal troubles – falling short on tax dues is a common issue – which can create costs that will add up and potentially devastate their operation. By sitting down with accountants and developing a financial plan, entrepreneurs will have a more accurate idea of when they will have capital and when they will need to save – a much more logical and effective strategy than simply 'going with the flow.'

"While it's in the DNA of an entrepreneur to just get things done, they can open themselves up to potential risks that can lead to business interruption, or even litigation if they try to handle key areas like legal, taxes and insurance themselves," said Kerridge. "This has the potential to unnecessarily cause a damaging domino effect on their business that could shut its doors permanently."

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