A growing business is an exciting prospect for any entrepreneur. But finances can prove a confusing fly in the ointment. Here we discuss when to hire an accountant.
As an entrepreneur, growing your business organically comes with a flurry of excitement which boosts your ambitions and helps your team’s drive go up a gear. However, it does also come with its fair share of questions and – if handled incorrectly – complications. Seeking help from the right people at the right time is crucial. But from whom and when should this business advice be sought?
One of the more common queries regards when a startup accountant should be brought onboard. And rightly so.
More than just numbers men with an in-depth knowledge of the nation’s tax system, accountants bring with them a wide ranging skill set that can help your business take its next steps in the right direction.
So how is it that an accountant can help you and when should it happen? Read on to find out.
How Can An Accountant Help Your Small Business?
As previously mentioned, accountants are often wrongly associated with the image of stuffy numbers men, hunched over a calculator, surrounded by mountains of mundane paperwork. This couldn’t be a more inaccurate depiction of the modern accountant.
Providers of valuable business insight, accountants have the ability to deduce where your business stands and what the future may hold by assessing your finances. Soliciting the help of an accounting agency can help you get a better grasp of what the numbers mean. It also ensures that your company doesn’t fall victim to any of the common pitfalls faced by growing businesses.
With this in mind, getting help from an accountant sooner rather than later can help you foresee these government requirements, hidden fees etc. and nip them in the bud before they ever develop into a more significant issue. But more on timing later.
In terms of actual examples, here are a few things that an accountant brings to the table for your growing business:
Organising and explaining accounting software
Nowadays almost all (good) accounting platforms exist within the cloud. This gives you the ability to check accounts in real time, access vital reminders and keep things up to date on the go using your mobile.
Everything from wages to invoices to expenses can be managed online. A good accountant will be able to recommend the right platform for you – such as Xero or QuickBooks. They will also be able to help set you up with it and use it in unison with you in order to give you a clearer vision of your finances. This helps you relax in the knowledge that your platform has been set up by an expert.
Soliciting the help of the likes of a certified Xero accountant can prove a shrewd move in this scenario.
Creating an accurate business plan
Every good business should have a business plan to follow. Consider it a map designed to guide your company on its journey to reaching its goals. Good accountants can help you create such a plan.
While you know what you want your business to achieve, they know the best means of getting there. By building a plan in tandem with your accountant, you can help set ambitious yet achievable targets for your business, whether it is a startup or established enterprise.
Keep your attention on the business
This one is relatively self-explanatory. By getting help from an accountant – whether it be an internal hire or through agency support – you will be opening up more time for yourself. What time you would have spent stressing over accounts can now be spent focusing on what made you start the business in the first place.
It is also important to note that hiring the right accountant at the right time for your business is key. For example, those operating within the creative sphere should seek out specialist accountants for creatives where possible. Specialists experience will mean that they have inside knowledge of your industry and how best to flourish within a given sector.
When Should Your Business Seek Help From An Accountant?
Simply put, it is a case of the sooner the better. If you are looking to expand within your field and take your business to the next level, then an accountant should be one of the first things to strike off your company growth hit list.
We have already touched on accountants’ ability to warn you of potential issues down the road. However, the strategic knowledge that they provide regarding your present status can also prove invaluable. Consider it a thorough spring clean of your accounts, making sure that all is where it should be and that no rules or guidelines are being unknowingly flaunted.
While earlier is better, it doesn’t mean that you may have missed the boat. Accountants can be a useful ally regardless of what stage they become part of your team. While the likes of startup accountants may be specialists at particular stages along your business timeline, there is sure to be an accounting agency around to suit your unique needs.
Can You Manage Your Own Finances?
While getting advice from an accountant is advisable, this isn’t to say that you cannot do it yourself. In some circumstances, this option is fine. Namely, if you have previous experience in the matter or are operating as a freelancer.
Trying to manage your finances in a situation in which neither of the above apply is an unwise choice. Missing even small details can lead to big issues further down the line.
Imagine it like trying to build a barn by yourself with little to no experience in construction. It may well be possible, but the likelihood is that errors will unfold during the process that may lead to it tumbling down.
If you are set on taking charge of your finances, it is smart to at least get help at the very start, so that you know that you are setting off from the right point. If you are just starting up your business venture, many startup accountants are very reasonably priced and will offer a review at a feasibly low cost.
