As a startup and small business owner, you must probably need some help managing your books. Hiring an accountant is useful when it’s time to make your first tax return or prepare your first set of annual accounts.
You might actually even think of cutting down costs. After all, starting a business is already a huge investment. One area you may consider is doing the accounting yourself. If you have an accounting background and a comprehensive understanding of business finances, you would think this is a good idea. However, if you lack the experience in business bookkeeping and only expect to learn as you go along the way, it would be smart to think twice about this decision.
The accounting system is not as straightforward as it seems, and managing your own, especially if you are only starting, can have a negative impact on your business. It could also hurt your business in the long run.
There are significant advantages to hiring an accountant for your business, whether it’s a startup or a small business:
- Your financial planning, cash flow forecast, and business plan will be more powerful.
- You will save money, in the medium and the long term.
- You can be assured that the financial structures of your business will be set-up properly.
Hire an accountant in London? Here are some reasons that hiring an accountant can help your business:
Accounting laws can be tricky
Admit it, you did not study accountancy nor have the time to read tax codes. You may have some vague idea about tax laws, but you are likely not updated as much as professional accountants are. Tax laws are complicated, and they can work either in your favour or against you. A skilled accountant can help you come up with strategies all year round to make the most of your expenses and deductions when tax seasons roll out.
An accountant can help during your startup process
When you start a business, there are many steps and actions you need to do and systems you need to set up to build a strong foundation for your business to bloom. Hiring an accountant can assist you by:
- Helping with the analysis of your business strategy
- Identifying the best structure for your situation (corporation, LLC, partnership, sole proprietorship)
- Offering advice and guidance on opening a business bank account
- Providing recommendations on the type of accounting need for your business
Setting the right systems in place
The priority of a new business usually involves getting the products or services right and starting to sell. This can be overwhelming, and often, it could result in business relegating procedures, software solutions, and systems to a low position on your to-do list. Before you even realise it, you are already six months into trading and your invoicing, VAT, payroll, debtor’s and creditor’s list are all a bit messy.
An accountant will help you choose the appropriate software and implement strong processes and systems so that you can trade effectively from day one. This could help you save huge money, time, and effort in the long run.
The Bottom Line
Hiring an accountant for your business and an orderly accounting system provides great savings on time, allowing you to put your focus and energy on business aspects that matter the most, and placing your business for maximum success and profitability. If you are looking for an experienced and skilled accountant, contact us Accotax today! We’re happy to help.