Securing Your Company’s Financial Future The Importance of Hiring an Accountant for Small Businesses By Mikkel Jensen
MONEY
W
hen a small business begins to experience growth, an accountant is not only recommended, but also a necessity. Every entrepreneur, small business, or start-up must ask themselves how they can benefit from the services of an accountant, and consider how they can assist with the nittygritty financial aspects of the business. The thought of filing taxes and general bookkeeping is something that can cause feelings of dread to business owners who increasingly want to be able to dedicate more time to big-picture tasks, rather than the day-to-day. However, while these tasks are undeniably tedious, they are not something that can be breezed over or rushed through. Mistakes and omissions can get you in trouble with tax regulators, and pleading ignorance over innocent errors won’t excuse them. As your business starts to grow, it’s easier to see the hiring of an accountant as a longer-term investment that will allow you to free up your days and dedicate more time to undertaking income-generating ventures instead. There’s no need to stumble through the dark when it comes to thinking about your company’s financial future. An accountant may be the impartial business mind that your company needs. While the task of finding one may seem daunting, fortunately, there are companies out there like Ageras, a matchmaking service that helps small businesses find the perfect bookkeeper or accountant.
Accountants offer “auditing insurance to reduce the possibility of an audit, covering the costs of responding to their government review, inquiry, or investigation.”
32
Home Business Winter 2021 ®
Reducing workload In the early stages of a start-up or small business, most people learn to be a jack-ofall-trades, having to manage every aspect of the business to some extent. But as a business begins to take off, as well as needing to dedicate more time to the day-to-day, the bookkeeping will also get more complex. It will reach a point when an accountant becomes necessary to keep up with growing finances and to even just free up the rest of your time. The right accountant should give you peace of mind and allow you to concentrate on other aspects of the business.
Buying or selling a business Rather than starting a business from the ground up, you may be interested in buying an existing one and managing it as a start-up. In this context, a small business accountant is essential to help you avoid hidden pitfalls like inheriting debt. Hiring an accountant will remove the fear of the unknown, as they will conduct a full and detailed study of that business, while also assisting with the technicalities of business acquisition through working with a lawyer. If you are on the other side and selling a business, an accountant will have all of the paperwork in order for prospective buyers.
Working with an accountant who has a specialty If you want to work with someone who will be an asset to your business and offer practical advice, it’s important that you hire someone who has specialist knowledge about your sector. Every industry is different and will utilize different methods of maximizing financial planning, such as tax deductions and business growth. The right accountant will be specialized in your industry, have experience in working with those businesses, and understand the unique ins and outs. This will also give you the best chances of having pre-warning of any regulatory changes that may affect your finances.
Helping aid sustainable growth While your business’s growth may seem manageable, a new client may require rapid expansion. Even though this is an obvious positive, sudden growth can be problematic.
An accountant may be the impartial business mind that your company needs.
An accountant can help make the transition process as smooth as possible, from getting new employees on the payroll to tax management, to practical matters like office space and property tax. Their expertise can extend as far as seeking out funding and the longer-term well-being of the whole company, such as financial incentives during a busy time.
Measuring performance It’s a common pitfall for new businesses to be so preoccupied with trying to get things off the ground that they forget to actually put measures in place to help them monitor performance. In the early stages, many businesses don't keep track of how they are performing against objectives that every start-up should set. An accountant can help put evaluations in place, which allows business owners to understand how their ventures are actually doing and how they can change based on the key indicators they consider important.
Legal business structuring It’s crucial that every business gets its legal structuring done right. The structuring of www.homebusinessmag.com
