When a small business begins to experience growth, an accountant is not only recommended, but also a necessity. Every entrepreneur, self-employed worker, small business, or start-up must ask themselves how they can benefit from the services of an accountant, and consider how they can assist with the nitty-gritty financial aspects of the business.
The thought of filing taxes and general bookkeeping is something that can cause feelings of dread to business owners who increasingly want to be able to dedicate more time to big-picture tasks, rather than the day-to-day. However, while these tasks are undeniably tedious, they are not something that can be breezed over or rushed through. Mistakes and omissions can get you in trouble with tax regulators, and pleading ignorance over innocent errors won’t excuse them.
As your business starts to grow, it’s easier to see the hiring of an accountant as a longer-term investment that will allow you to free up your days and dedicate more time to undertaking income-generating ventures instead. There’s no need to stumble through the dark when it comes to thinking about your company’s financial future. An accountant may be the impartial business mind that your company needs. While the task of finding one may seem daunting, fortunately, there are companies out there like Ageras, a matchmaking service that helps small businesses find the perfect bookkeeper or accountant.
Reduce workload
In the early stages of a start-up or small business, most people learn to be a jack-of-all-trades, having to manage every aspect of the business to some extent. But as a business begins to take off, as well as needing to dedicate more time to the day-to-day, the bookkeeping will also get more complex. It will reach a point when an accountant becomes necessary to keep up with growing finances and to even just free up the rest of your time. The right accountant should give you peace of mind and allow you to concentrate on other aspects of the business.
Buying or selling a business
Rather than starting a business from the ground up, you may be interested in buying an existing one and managing it as a start-up. In this context, a small business accountant is essential to help you avoid hidden pitfalls like inheriting debt. Hiring an accountant will remove the fear of the unknown, as they will conduct a full and detailed study of that business, while also assisting with the technicalities of business acquisition through working with a lawyer. If you are on the other side and selling a business, an accountant will have all of the paperwork in order for prospective buyers.
Work with an accountant who has a specialty
If you want to work with someone who will be an asset to your business and offer practical advice, it’s important that you hire someone who has specialist knowledge about your sector. Every industry is different and will utilize different methods of maximizing financial planning, such as tax deductions and business growth. The right accountant will be specialized in your industry, have experience in working with those businesses, and understand the unique ins and outs. This will also give you the best chances of having pre-warning of any regulatory changes that may affect your finances.
An accountant will help aid sustainable growth
While your business’s growth may seem manageable, a new client may require rapid expansion. Even though this is an obvious positive, sudden growth can be problematic. An accountant can help make the transition process as smooth as possible, from getting new employees on the payroll to tax management, to practical matters like office space and property tax. Their expertise can extend as far as seeking out funding and the longer-term well-being of the whole company, such as financial incentives during a busy time.
Measure performance
It’s a common pitfall for new businesses to be so preoccupied with trying to get things off the ground that they forget to actually put measures in place to help them monitor performance. In the early stages, many businesses don’t keep track of how they are performing against objectives that every start-up should set. An accountant can help put evaluations in place, which allows business owners to understand how their ventures are actually doing and how they can change based on the key indicators they consider important.
Legal business structuring
It’s crucial that every business gets its legal structuring done right. The structuring of your business is determined as soon as an accountant is involved. They can help you determine a realistic structure, deciding whether yours is a limited company, sole proprietorship, limited liability corporation, or partnership. As businesses grow, changes to tax implications can result in hefty fees if not monitored properly. An accountant can assist by providing advice on invoicing under your name and working as a self-employed person.
Auditing
When your company is selected for a government audit, having a good accountant in place will make the process as stress-free, streamlined, and efficient as possible. Accountants offer auditing insurance to reduce the possibility of an expensive audit, covering the costs of responding to their government review, inquiry, or investigation. Audit trails can also be an effective way of preparing companies to trace past transactions.
Applying for loans
When dealing with financial institutions such as banks, it’s important for businesses to have credit facilities established. Showing that your business is well-established, sustainable, and can present accurate facts and figures will all help aid a favorable credit score. An accountant can produce projections and expected revenue when applying for a business loan. Not to mention, any business owner would rather have an accountant handle the small print, terms, and conditions.
When it comes to growing a small business, it may be tempting to cut corners and reduce costs wherever possible. However, as they say, a stitch in time saves nine. Your future self will thank you for making the smart decision to hire an expert to manage an aspect of the business that may seem dry, but in reality, is the most important thing to get right for so many reasons.
No matter how competent you may be with managing finances and bookkeeping, some aspects of it probably still cause you dread. There’s no reason to continue investing time and energy into something that can be handled competently by an expert. Also, by becoming aware of the greater benefits that exist around hiring an accountant, you can see them as a means for increased strategic planning and sustainable growth. Even better, the free matchmaking service from Ageras will connect you to the right fit for your business fast.
The delegation of tasks, reduced workload, legal security, and sustainable growth are not only desirable for businesses, but also totally attainable with the right tools. A change that seems so small can bring the biggest results.
Additional Quick Tips to Consider
If you have never considered bringing an accountant on board for your small business, here are some key points to consider that will open your eyes to the extent of the benefits they can bring. It’s not just about short-term tasks, but also long-term strategic planning. Think of your accountant as someone you can bounce ideas off of as well as manage your taxes.
Meet government regulations
The tax season and the tedious paperwork it brings can be hugely daunting for small business owners. Not only can an accountant deal with the fundamentals of tax returns, but also they can assist in government interactions by filing legal documents, updating your small business in the government’s register of companies, handling the company’s formation and share allocation, and handling payroll.
Stay ahead of trends
A good accountant shouldn’t just be able to effectively complete the day-to-day tasks; they also have to keep up with trends, changes in rules, and regulations that may affect your business. They should be able to produce financial forecasts and make you aware of potential issues that may crop up well before they do. After a thorough financial evaluation, they should present you with tools and solutions to manage such an issue should it arise, and continue to carry out regular checks.
Improve cash flow
Without a proper hold on your business’s cash flow, you will be in the dark about what potential decisions you can make. A good accountant will ensure that you have proper cash management strategies in place and equip you with all the essential information to make well-informed decisions regarding business management and investment to maintain positive cash flow. Business owners should always have a sound grasp of what kind of spending they can make for both immediate needs and longer-term plans.
Get deductions
When the tax man comes around, it can be hard to understand exactly why certain amounts of money are being taken from your hard-earned income. Most businesses wait until it’s too late to try and make deductions, but an accountant can spot these things early on in the year and advise on the best way to make strategic decisions to avoid unnecessary taxation. Even tracking and accounting for things like home office space, expenses, and depreciation can make a huge difference when the end of the tax year rolls around again.
Work with a specialist
If you want to work with someone who will be an asset to your business and offer practical advice, it’s important that you hire someone who has specialist knowledge about your sector. Every industry is different and will utilize different methods of maximizing financial planning, such as tax deductions and business growth. The right accountant will be specialized in your industry, have experience in working with those businesses, and understand the unique ins and outs. This will also give you the best chances of having pre-warning of any regulatory changes that may affect your finances.
