At various stages of the growth of your company, there are good reasons for hiring an accountant. A small business accountant will make it simpler for you at the – point, from a business plan to business creation, loan application to a tax investigation.
You can assume that you can’t afford an accountant, like all small business owners who are looking to save money. But look at how long it takes for you to fulfill those activities (such as taxes) and ask yourself, is it a reasonable use of your time?
When Do You Need An Accountant
If you have an accountant in London to take care of time-consuming activities such as taxes, however, it is very likely that they would cost less than you will pay yourself per hour. Not only will you have extra time to free yourself to raise sales, but you’ll have peace of mind that the specifics are taken care of by a professional. So When Do You Need An Accountant?
1- Launch of New Business
When you start a new business, there are many things to do and countless decisions to make. Small business accountants 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.
2- 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.
3- Payroll Management
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.
4- 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.
5- 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.
6- Tax Preparation
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.