As a small-business owner, you probably thrive in a DIY environment; but the more hats you wear, the less you’ll accomplish successfully. Accounting is one of the most important areas for keeping your company profitable. As you start out and your company grows, software can only take you so far. Accountants can help your company move forward.
Hiring an accountant is one investment that can really make a difference to your company’s growth. The expertise and knowledge of an accountant is invaluable, whether you’re writing a business plan, managing your day-to-day expenditure or dealing with tax compliance. You might think it’s too early to hire an accountant, but the way you set up your operations can have a serious impact on your future success.
An accountant can help you determine the most appropriate business structure, analyze your business plan for financial compatibility, and assist you with making sound financial decisions throughout the startup process so you don’t have to spend more money to correct mistakes later. They can use accounting software to add financial projections and other reports to get a better handle on the numbers. This helps you create a business plan that’s realistic, professional and more likely to succeed.
There are different types of legal business structures. You could be a sole trader, limited company or even a limited liability partnership. An accountant will explain the business legal structures and will help you choose the right one.
When banks lend money they like to know they’ll get it back. Lending to small businesses has dropped in most countries since the recession. An accountant can present numbers and projections to convince the bank you can repay the loan.
If you’re doing the accounting on your own, things can soon become complex. You might feel that you’re losing control of your debtors and creditors, or that your own financial understanding is too limited. Hiring an accountant can get you back on track.
One of the best things about running your own business is the ability to be in control of every part of the operation. But as you grow and focus more on leading the business forward, the time will come to delegate more financial responsibility. Sometimes your business grows at an unexpected rate. Having an accountant can help you deal with these growth transitions leaving you free to look at the bigger growth picture. Hiring an accountant to run some of the financial elements gives you more time at the helm of the business.
There is plenty of tax and regulatory paperwork that you need to fill out as your business expands. Dealing with government issues can be quite technical aspects of the running of the business can be daunting. Accountants can help you with more than just tax returns, though. They can help you keep on top of all your regulatory and compliance requirements.
Once your business gets to a certain size or turnover, you may need to be audited. An audit can be a stressful, time-consuming and expensive experience. If you haven’t already hired an accountant, this is the perfect time to get someone on board. They’ll give you advice on the auditing process and make sure you comply with tax and audit compliance laws.
You don’t have to start a new company to go into business; you can buy one that’s already up and running. But before buying an existing business, you should talk to an accountant. They’ll look at the company’s accounts to make sure everything looks shipshape.
Accountants can help you out during every stage of your company’s development. Even when it’s business as usual, an accountant provides key insights into your company’s financial situation. They can help you grow your business and provide you with peace of mind so you can focus on what you truly love doing.