When to hire an accountant
An accountant is a finance professional who can help you throughout the stages of your business. Although it’s not mandatory that all entrepreneurs work with an accountant in the running of their business, it is advisable to contact an advisor, particularly a tax consultant when it comes time to file returns.
What many entrepreneurs don’t realise is that it doesn’t need to be either/or when it comes to working with an accountant or taking care of your business accounts yourself. There are ways to manage your accounts, but still receive that crucial assistance from a financial professional when needed.
The challenges of a growing business
Hiring an accountant from Day 1 can make your experience go more smoothly than attempting to manage all the financial aspects on your own without a professional background in accounting for small businesses.
This is true not only when it comes to establishing your business and setting a realistic budget, but also when it comes time for tax filing.
As an entrepreneur, especially just starting out, you might be under the impression that you can’t afford the services of an accountant. However, there are many different possibilities for working with an accountant today, as well as accountants specialising in certain industries or company sizes - with the fees to match.
This mean that there are other opportunities for receiving the financial advice you need to get your business off the ground and running from the start, as well as provide tax advisory services when the time comes. Not to mention providing consultation in between. For more on how an accountant should work for you, check out our blogpost ‘What your accountant should be doing daily’.
In this way, you can almost certainly find a way to work with an accountant that is good both for your business and for your bank account.
For example, consider the time it takes to gather your data, organise it and generate the financial reports necessary for filing tax for your business. Without help, this can be a lengthy and complex process, costing you countless hours of work and with no guarantee that it has been done correctly.
Because there are so many alternatives today, it is certainly possible to do some research to discover the right solution for your business. So when’s the right time?
Hire an accountant get your business started right
Not all businesses have the same legal structure. There are different types of companies, depending on your industry and registrations. From a sole trader, to a limited company, to a partnership, the options are many. An accountant with small business knowledge can help advise the best structure for your particular business and outlook.
Hire an accountant for tax consultation
Filing your tax returns can seem like a daunting process. Filing as an individual can be far less complex that for a registered business with more moving parts and legal reporting requirements.
For managing the day-to-day accounting tasks, a good online accounting software can make this fast and simple. By keeping up with your business accounts on a regular basis, you take control of what you spend as well as have a better grasp of your revenue.
It also makes working with an accountant faster, easier and therefore hopefully less expensive, if you decide to defer to them when it comes to tax. Cloud-based accounting & invoicing software makes it easy to invite your accountant to collaborate.
Hire an accountant as your business grows
Making the transition from a sole trader to a limited company with employees can have a big impact on your accounting. But these big changes don’t always occur at a leisurely pace. A big project can quickly launch your business onto an unexpected trajectory and a sudden influx of customers.
In these situations, it’s advisable to start working with an accountant if you’re not already, in order to prevent or manage the growing pains. When you externalise the tasks such as salary, national insurance, etc., you can focus on the strategy and the continued growth of your business while ensuring the financial aspect is covered.
Hire an accountant before making a business decision
After developing a business over several years and putting your time and energy into making sure that it not only survives, but thrives, it would be strange to make big decisions without consulting an expert, especially if it pertains to your company’s finances.
Options such as ceding your brand to a franchise, selling a business, or acquiring a business, are all decisions that should be made with the help of a knowledgeable financial advisor who has a thorough understanding of the fiscal health of your business. An accountant can analyse the strategies, the financial situation, and recommend the best action for your business.
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