10 reasons your small business needs an accountant
One of the most exciting things about managing a small business on your own is the ability to be in control of every operation. However, as the business grows, it can be a bit daunting to juggle multiple roles. This is why you need the help of an accountant. Here are the top 10 reasons why the expertise and knowledge of an account can be invaluable to your company:
1. Creating a Business Plan
Trained to use special types of accounting software, an accountant is capable of adding financial projections and other reports fast and efficiently. This means that if you involve the help of a professional accountant, you are assured of getting a business plan that will increase the likelihood of business success.
2. You Need Help With Your Finances
Unless you have the necessary skills and knowledge, doing accounting on your own can complicate things for your business. You may end up losing control of your debtors and creditors or make costly financial mistakes. Hiring an accountant can help you get back on track.
Buying a franchise is one of the most effective ways of starting a small business. This is because the franchise company gives you the opportunity to be your own boss and gives you all the relevant marketing, sales, and brand support you can possibly ask for. A professional accountant will help you confirm the validity and sustainability of a franchise as well as the possible related charges and income.
4. Buying and Selling a Business
To get into business, you can either start a company from scratch or buy an already established business that’s up and running. If you are thinking of buying an existing business, it is important to consult an accountant. The accountant will go through the company’s accounts and make sure that everything is in order.
If you have been running your business for years and would like to sell it due to one reason or another, you will also need the help of an accountant. The accountant will help you put your financial records in order and create clear statements of accounts to show prospective buyers.
5. Guidance on Your Company’s Legal Structure
Every business has its own unique business structure. Whether you are running a limited company, a limited liability partnership, or a private business, you should look for an accountant to explain to you the legal structures of the business and help you choose wisely.
As a requirement, your business may need to be audited once it gets to a certain size or turnover. Since auditing is stressful, expensive, and time-consuming, you should hire an accountant to help you go through the experience smoothly. He will guide you adequately through the auditing process and make sure that you comply with all the relevant audit laws.
7. Dealing with the Government Requirements
As your business expands, you will have to deal with plenty of tax and regulatory paperwork. You need to hire an accountant to help you comply with all tax and regulatory requirements.
8. Applying for a Business Loan
When banks or other financial institutions lend money, they are interested in knowing how they’ll get their money back. An accountant can convince any financial institution that you have the ability to repay the loan by presenting relevant figures and projections.
The more your business continues to grow, the more you focus your mind on how to take it forward. Hiring an accountant to manage some of the financial elements gives you more time to concentrate on other business operations.
If your business is growing at an unexpected rate, you need an accountant to help you deal with all growth transitions. These include hiring more employees, looking for a bigger office space, and market expansion.
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