Most global corporations have the luxury of an in-house team of accountants working round the clock to ensure that taxes are paid on time, profit potential is evaluated and growth is managed successfully. However, a good accountant is as much a vital part of a small or start up business as it is for international companies.
Here at My Accountancy Place we’ve drawn up a list of ten reasons why a great accountant can help your small business flourish:
1. Your accountant can help you get your business right from the start. A good accountant won’t just help you with tax planning but can also give advice on how to strengthen your business structure so it supports your ambitions.
2. An accountant can advise on what type of business structure is best suited to your business and situation, whether that be sole proprietor, a limited company, a partnership or something else.
3. For a small business owner, forecasting your cash flow is especially important. Over or underestimating incoming costs or expenditure can be fatal to the future of your business.
4. Many accountants are, or have been, employed in organisations that deal with a wide variety of sectors. As a result, your accountant will be able to offer you expert, industry-specific advice, even if you decided to take your business in a different direction.
5. Starting up your first business is often a huge learning curve and inevitably many first-time owners encounter some hiccups along the way. A dedicated accountant will keep in regular contact with you and will be happy to resolve any problems when they arise.
6. There is a whole host of accountancy software on the market today, making it difficult to choose which is right for your business. An accountant can help you make the decision and can even offer one-to-one tutorials on certain programmes so you can access, and most importantly, understand your accounts.
7. As your business grows, you’re likely to take on more employees to support your expansion. However, as a business owner operating a busy company it is often difficult to find the time to manage the pay roll system. An accountant can take this task off your hands and make sure that all your employees are paid the right amount, at the right time.
8. Because of the respect they receive in the local business community, accountants can also provide important networking contacts and can even help you prepare your finances to present to new investors.
9. Accountants constantly make sure they are up to date on the latest tax legislation so they can ensure you don’t pay any more of your hard earned money than is absolutely necessary.
10. Finally, a good business is a law-abiding business. Certain financial tasks are required, by law, to be carried out by an accountant. Employing an accountant to oversee these financial matters will not ensure you avoid fines or legal action but will also give you peace of mind that everything is being taken care of correctly.
If financial statements confuse you, you have a hard time creating reports, or you are lost when it comes to accounting terms, you likely need to hire an accountant — at least initially — to coach you in all things financial. An accountant can talk to you in straight terms, weed through terminology, and teach you how to manage your own finances. In addition, you don’t want to miss key information or make mistakes early that could cost you down the road. An accountant can start you and your business off on the right track.