The Importance of Hiring an Accountant for Your Small Business
If you own a business then you will know how important it is for you to keep your sales high. You also have to make sure that you are bringing in more money than what you are spending, because if you don’t, the viability of your business could be in jeopardy. Most businesses keep some track of their income but there are still so many out there who don’t have any kind of accounting structure at all and this can cause you major problems in the future.
If you are a sole proprietor, then you will probably have the overarching goal to expand into a limited company or even an umbrella company. This is great, but did you know that an accountant can help you with this? They aren’t there just to advise you with your finances, they can also help you to improve nearly every single aspect of your business. If you are just starting out, they can look over all of the financial plans that you have and as you grow. They can project how long it is going to be before you can expand and they can even help to point you in the right direction if you decide, at any point, to change your business structure or even your pricing.
Sure, you will be held responsible for how accurate your accounting is, but at the end of the day, a professional accountant can handle almost everything on your behalf. They can manage your workers’ pay, help you to fill out tax returns and even help you to apply for payday loans online. They can even stop you from staying on hold for hours on end trying to get your payments sorted out, which is a huge bonus for business owners who always seem to be short on time. If you fill out your own accounting information online or even through an app, it may save you money, but if you are not careful one mistake can cost you dearly. You also need to take note that as your business grows, your accounting will become more and more complicated. Having a professional accountant in your corner can be a big asset for your growing business.
At some point, you may want to make an investment. It doesn’t matter whether you are getting it as a bank loan, through an investor or even through an online service. In every instance you have to acquire a solid plan that will show your investors and everyone else how you plan on using that money and where it will take your business in the future. If you do not have a plan like this, your chances of acquiring the investment you need are very slim. An accountant can help you with this task by creating a plan for you, while also making sure that all of your forecasts and accounts are up to date. They can provide the reassurance you need to strategically invest for the future, while remaining realistic.
Peace of Mind
When you have an investor who can work with you to guide you through every aspect of your finances, you will have the peace of mind you need to progress your company properly. After all, you may think that you are ready to expand, but if your finances are not in order then this could be disastrous for your company. You may even end up gaining some bad press as a result and this is the last thing that you need. An accountant can work with you to make sure that you are fully aware of where you stand, and with their help you can expand confidently.
So many people think that accountants are expensive, and they do have their costs. But they can also end up paying for themselves in a very short space of time. For example, if you end up having to pay a fine because you miscalculated your tax return, this will cost you dearly and it could all have been avoided. On top of this, the time that you spend doing your books yourself is probably triple or even quadruple the time that it would take an accountant. Imagine if this time were spent on growing your business. You would be significantly further ahead when compared to the position that you are in right now, and you would also be able to provide a much better customer service because you have more time to focus on their needs.
When you have an accountant working with you, you will appear much more professional to your customers. You will also appear more professional when going for a loan, talking to investors and even buying inventory. In some instances an accountant can help you with that as well, by letting you know which products are making you the most money, at what time of year you sell the most and anything else of the sort. All of this can make a huge difference and you would be surprised at how much of an impact this could have on your sales. An accountant is also especially helpful when hiring new staff, as they can tell you the wage that you can afford to pay them. You can then compare this to the standard wage for that position as well.
Truly, there are many reasons why you should consider hiring an accountant, if you don’t have one right now. They provide growing companies with advice, support, peace of mind and can actually save you money by avoiding costly financial mistakes.
Does your small business use an accountant to handle your finances? Share why or why not!