Do you know when to seek expert accounting services for your startup?

expert accounting services

In most cases, startups do not invest on specialist employees, but there comes a time when your enterprise is crying out for an accountant. Here's six such cases

Some of the biggest companies started small. As a result, they did not need to seek expert accounting services until much later on. If you did not start big either, there comes a time when your business needs an accountant. This article explains when.

As a new business owner, most of the activities tend to revolve around and be performed by you. The fact is that you can only sustain this state of affairs for so long, hence the key question: When should I seek expert help?

The response to this varies with the stage your business is in, and the kind of expert you’re looking for. Today, we focus on when you should consider hiring an accountant to help you run your business optimally.

Need for expert accounting services

Accountants help out in the growth of your business. They handle more than just tax and payroll. This question of “when should I consider hiring an accountant?” has become all too familiar. The answer, however, depends on your immediate needs. And those of the business. Out of your needs, you will either get a full-time accountant, part-time one or contract one.

A good reason for hiring an accountant therefore varries. Whether it is to assist create a business plan, organize the business in a different conformation such as a company, apply for a loan from a financial institution, provide support with a tax audit or simply to delegate some internal bookkeeping duties. However, since we have a number of rogue ones out there, recruit your accountant carefully.

Here are some moments when an accountant would be a smart hire.

1. When measuring business performance

Say you need to write down some financial projections, a business plan or the usual business finance management and reporting. An accountant can help you use an accounting software to generate reports. Either way, your business will benefit more if you used expert accounting services rather than trying to do everything by yourself.

2. Need to plan ahead

The accountant you need could help in planning and financial projections. If so, the earlier you hire one, the better. This way, you benefit from sound financial knowledge. It saves you a lot of money and helps you mitigate risks associated with poor financial management.

3. When to need to scale up

Businesses grow, and in some cases, this comes down to how they were organized early on. In fact, you might want to change how you carry on business. From a proprietorship to a company. Or from one type of company to another.

expert accounting services
A professional accountant helps your business grow faster by providing information used in making critical decisions. Image by Alexander Stein from Pixabay

An accountant can also advise you on the best legal structure for your business. It is a fact that you will have business liabilities. When you operate as a sole trader, you could be held personally liable for business deals whereas in a limited liability company, the burden of the enterprise is limited to its assets.

Whatever the reason, making use of expert accounting services will inform your choices better. And you will make better decisions. Your business wins in both cases.

4. Save time and costs from hiring a professional

Accounting is, generally, a complex activity. In fact, SME accounting can easily become complicated and confusing when you do it yourself. You could also get overwhelmed easily since you are stretched across many control points.

Procuring expert accounting services from an experienced professional is a smart decision. The accountant will help you fix your cashflow by computing key business metrics that help you ensure that the outfit is on track. Say ratio of salaries and other employee payments to total revenue, cashflow analysis, your gross margins and net margins.

These are reports that help you understand your business’ financial standing at a glance. It is even better if you are using an accounting software that is online as this can allow even an external accountant to review your financial records for regular reporting. These kinds of reports help you monitor the pulse of your business. With the reports, an accountant is able to offer input on how to improve your business model, pricing or even inventory.

5. Need to file tax returns

Generally, you need an accountant to prepare and file tax returns. Although we have software that simplifies this, it is always safe to get a seasoned hand to deal with the taxman.

A good accountant should help you complete and file all legal and compliance company returns, prepare regular annual statements of accounts, handle your payroll, get your individual taxes and other payments recorded, along with performing bank reconciliations each month. A good accountant will help you meet tax obligations. If external auditors are coming, your accountant should ensure that all necessary reports are ready.

6. Apply for a loan

You will need to hire an accountant who can help you apply for a big amount of debt from a bank or any other credit institution. You also need a CPA to secure an overdraft or securing a fresh investment. An accountant will help you develop the financial statements your bank will need. Your accountant can help you know if the loan interest, terms and conditions are in line with your interests and current circumstances.

All in all, you will need to hire an accountant at some point to keep your business growing. And when the time comes, I hope you recruit wisely.

Do you know when to seek expert accounting services for your startup? 1

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Vani loves football and business. He's presently writing on small business, social media, and football. Long may it continue!