One of the reasons why so many startups went out of business is because they failed to have their finances in order. No matter how great your ideas, products, and services are, you will likely fail if you are not making sound financial decisions and managing your finances properly. It is reasonable that you may not want to invest in a full-time accountant, especially when you are only starting out.
However, an accounting professional still plays a crucial role in the success of your business. In fact, even the smallest startup needs an accountant to help make sure that they are getting off on the right foot and that the business is in compliance with the ever-changing laws in business and corporate finance. If you are still hesitant to hire an accountant, here is a list of accounting services to convince you otherwise:
Launch of New Business
When you start a new business, there are many things to do and countless decisions to make. An accountant can guide you through the process and make sure that you start off on the right track. Here is what an accountant can help you with:
– Choosing the best business structure that will benefit you from a tax and legal point of view
– Applying for an Employer ID number
– Setting a startup budget
– Establishing invoicing and collection strategies
– Setting up your home office to get the most tax benefits
– Making sure that you adhere to all employment laws.
Small Business Accounting
When it comes to running a small business, there are many financial responsibilities that you need to take care of. Of course, this involves more than just creating a budget in a spreadsheet. An accountant can assist you with small business matters, including reconciling bank statements, getting financial statements ready, setting up an accounting system, and training to use accounting applications.
Even though you may not be ready to hire your first employees, you still have to be prepared for when you do. An accountant can help you determine how to do payroll in a way that is advantageous for you and your employees. They can also assist in reviewing payroll accounting systems and help in making a sound purchasing decision.
Audits and Reviews
Small businesses can be audited as well. Lenders or investors may request to have your startup audited by an independent third party. An accountant can complete the audit for you or help you prepare your financial books for the audit. They can also identify any issues and resolve them to keep the lenders and investors satisfied.
Cash Flow Management
Poor cash flow management can be the downfall to startup businesses. It forces you to rely on lending and credit cards to operate. An accountant can help you set up good systems so that you can effectively manage your cash flow. This means that you won’t fall into debt too early.
Tax season can be extremely stressful for every business owner. In order to comply with local and federal laws, you need to gather everything you have accounted for over the course of the given year. An accountant can help you prepare all the required documents and reports. They can also assist you with locating discounts and write-offs that could reduce your expense, as well as resolve any issues that may have emerged during tax filing.
If you’re looking for a cheap accountant in London, get in touch with us today!