When Should You Hire an Accountant?
Professional accountants have a vital role in the success of your business. From collection to accuracy, payroll to tax returns, recording to analysis of company’s financial operations, they can easily handle all of these functions.
Accountants can be of a great help at different phases of your business. So, when should you make a decision to hire an accountant to represent your business? Here are some situations where having a professional help is all what you need.
Making your business plan
When making a business plan, it is best to have an accountant by your side. With the use of accounting software, your accountant will be able to add financial projections and reports helping to create a realistic business plan. Another benefit of a having a professional help from the very beginning is you will get an insight about their financial knowledge. In the long run, it will save your time and money as well.
Choosing your company’s structure
Different types of businesses have different legal structure. That is why you should consider the each type to find out which one best suit you. Limited companies, limited liability partnerships or corporations, sole traders or proprietors are the some types of businesses that exist today. For instance, if you are a sole trader or proprietor, you can compensate the living expenses against tax but also be liable for any business-related obligations as well. Along with that, failing to pay a supplier or debt, the creditor can legally take all of your possessions including the house.
With a profound knowledge about such business structure, an accountant will be able to explain the structures and help to choose the right one for you.
Managing your finance
An accountant is the best person who can handle your money. If you choose to do by yourself, balancing your accounts can become complex. Managing your payrolls and ratio of your employees’ salaries should be best left to your accountant. As an accountant uses cloud-based accounting software, he can share all the details you need to know about your business’s financial status in a simple manner.
For delegating your financial affairs
As much as you think that no one can handle your business like you, it is good to delegate your business’ affairs to someone at some point of time. Over time, you must be able to trust to hand over some parts of your business to someone capable. This is where assistance of an accountant becomes very fruitful. You should delegate your business’s financial aspects to your accountant. As he is probably more knowledgeable than you in the accountancy area, he will take care of it giving you time to focus on the other important aspects of your business.
Handling your government issues
Dealing with government issues can be a daunting task. So, for interacting with government about your business’s issues, hiring an accountant is a must. An accountant will be able to prepare the legal, tax and compliance documents for your business leading you to save more money. With the changing tax laws and legislation, accountant will be updated with all of the changes for ensuring correct tax codes and payments are recorded. An accountant also prepares annual statements of accounts and updates your company’s status in the government's company register.
Taking care of audits
Before an audit happens to your business, it is best you hire an accountant. He can guide you on how to work during the auditing process and help you prevent from going against any tax laws. Moreover, if an accountant offers audit insurance, he will only charge for the amount of work carried out during the audit process.
Apart from these situations, an accountant can also help you to choose the loan suitable for you from a bank. With an accountant working for you, he will be able to present the figures for backing up the funding and answer about revenue projections which will strengthen your case in front of the bank.
No all the business grows rapidly, but having an accountant
can certainly increase the chance of your business’s growth. Thus, leave your financial aspects to your accountant and concentrate on what you love doing.