When you’re starting out with a new business idea, hiring an accountant can seem like a prohibitive and unnecessary cost to you and your fledgling small business.
However, the benefits that accountants can provide often outweigh the associated costs, especially if you know what type of accountant you’re looking for and the ways in which they can help.
For businesses of all sizes, accountants can do so much more than help you to file your tax returns and handle payroll; they can support your business at many different stages throughout its development.
Furthermore, if you make a mistake by managing your accounts yourself, it may cause significant long-term damage to your business. With your own day-to-day business tasks to focus on, it is best to leave the finances in the hands of a professional.
Not sure you need (or can afford) an accountant? Here are some ideas on how accountants can help your small business.
Starting your business
An accountant can be a vital advisor when you are beginning your business. They can explain the different business structures and whether you will be best as a limited company or sole trader. They can also tell you how to prepare your finances and offer their expertise when it comes to the best accounting software to use.
With thousands of different types of software to choose from, as well as accounting apps, it’s best for you to leave choosing this to the professional so they can advise you on what’s best.
An accountant can be a great help when it comes to keeping your finances above board. They can provide tax predictions throughout the year so that you can budget appropriately when your bill is due.
Accountants can complete your financial reports and conduct payroll as well. As your business grows and you become busier, delegating finance tasks to your accountant gives you peace of mind that a professional is looking after your business.
With real-time reporting and analytics, accountants can help to provide the metrics that can shape your business goals. When you want to expand, accountants will know how best your business can develop based on your finances. They can also work with you to provide forecasts and budgets and make sure your growth plan is measured, realistic and achievable.