At the launch of most small businesses, one area owners often pay less attention to is the aspect of hiring accountants. They may pay realtors to help them secure a space where they know sales will be guaranteed and invest tons of dollars in marketing and advertisement. But when it comes to how money goes in and out of the business, they just assume they can DIY.
This is a very wrong assumption, one that has cost lots of businesses their running capital.
For a fact, we know that most entrepreneurs are opportunity-seekers and idea-builders, and not accountants. So, why should an entrepreneur think they can handle the financial aspects of their business?
I see no reason!
But in case you’re one of those entrepreneurs who see hiring an accountant as a waste of money, I recommend checking the rundown of the things an accountant can do for your business before you make up your mind on the subject.
We spoke to Fortress Accountants Coventry, Andy said “Many business owners do not understand the impact having a good accountant can have on their business.”
As part of our research we reached out to a Cinch Storage Buckingham, the owner said “being previously in finance myself, I understand the importance of knowing your numbers. As the old saying goes, you are either on top of your numbers or they are on top of you. I would highly recommend hiring an accountant, it has done the world for my storage business.”
At the launching phase
Right from the startup phase, the relevance of an accountant in a business cannot be underestimated. Below is a list of things an accountant can do for you when you’re about to launch your business:
- Helping you choose a business structure: Although an entrepreneur might know the names of the various business structures there, that doesn’t make him the right person to choose the best one. An accountant has the academic background, experience, and know-how needed to decide which structure is best for a business. For example, let’s say you hire an accountant in Coventry from a platform like Fortress Accounts, they will help you choose between a sole proprietorship, LLC, Corporation, and Partnership business.
- Guidance on your business account: An accountant will help make the process of opening your business account a seamless one.
- Government regulations: If I’m to take an educated guess, I’m sure you don’t know too much about all the prevailing government regulations guiding a business’s opening in your country. But an accountant does!
- Setting up a business plan: An accountant can help set up a qualitative business plan. Remember, you cannot afford to create a wishy-washy business plan if you intend to secure funding from external sources.
- Accounting software: It doesn’t matter the size of your business; you’ll need accounting software. But who’s in a better position to tell you the ones you need other than an accountant?
- Expert advice on cash flow: What better way is there to track how money enters and leaves a business than hiring someone who’s been doing such tracking all their life?
At the growing stage
The prayer of every business owner is for their business to thrive and grow. But for this to happen, there are some steps you have to take. Luckily for you, an accountant can help you through the course of taking these steps:
- Growth potential: An accountant can help you identify when your business is ripe for growth and expansion by highlighting key cash flow patterns, business financing options, and inventory management.
- Auditing phase: Every business has to endure the grueling reality of being audited at one point or another. Thankfully, an accountant’s presence on the ground can simplify the whole process for the business owner.
- Future financial forecasts: Since you crave growth as a business owner, you might be blinded to those possibilities that can affect your business. But with a professional accountant working hand-in-hand with you, you’ll be guided through your decision-making with relevant financial forecasts.
- Budgeting: Every growth ambition demands a financial realization. Your accountant will help you strike out a detailed budget to support the goals you have in mind.
- Expert advice on properties: Along with growth and expansion comes the need to expand a business’s residence. An accountant can help you choose the right property options in renting, buying, or leasing.
Every day running of the business
As soon as the business is up and running, you’ll need an accountant to handle the following processes:
- Interpreting the implications of financial statements: From invoices to receipts, bank statements to checks, financial letters to documentation, and everything else in between, an accountant will keep you up to speed with all the implications of the financial statements relating to your business. For example, he/she can remind you of the need to reach out to long-standing debtors, invoices that haven’t been cleared, and bills that need paying.
- Complying with the standards of regulatory bodies: As far as the classification of people working with you goes, an accountant will see that workers are properly classified as temporary, contract, or permanent staff.
- Wages and Salary: Obviously, an accountant won’t be the only person working with you. You’ll have other members of staff and contractors working for you. An accountant can help you handle their salary and wages.
- Taxation: Of course, you’re going to pay some taxes. But what, when, and who are you paying to? All these are questions an accountant can help you answer.
Author Uday Tank has been working with writing challenged clients for several years. His educational background in family science and journalism has given him a broad base from which to approach many topics. He especially enjoys writing content after researching and analyzing different resources whether they are books, articles or online stuff.
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