Accountants are useful in diverse ways during the various stages of growth. You may not think you need accounting services before you launch, but professional help can really set you up for future success. Here is how an accountant can help you throughout your business journey:
Pre-Launch
A competent accountant can help you put together a feasible financial plan for your business. They are also able to offer advice regarding pricing, raising finance and securing equipment. Hiring an accountant this early in your business also helps you to avoid accruing financial errors which can be difficult to sort out later on. Additionally, their services free up your time to concentrate on other areas of your business that may require attention.
Start-Up
An accountant will help you put your best foot forward, financially speaking, during the start-up phase of business. It is well worth having a professional on hand as you are learning the ropes. Amongst other things, accountant can help to set up an accounting system and choose suitable accounting software that will serve you going forward and save you money.
Expansion
Whilst it is advisable to hire a professional accountant as soon as possible, it is absolutely crucial when your business reaches the point of expansion. Hiring more staff means that you will need a payroll system and advice on employee benefits. As your business grows bigger, it is also more likely to be audited and an accountant can help you to prepare for this. Increased costs also mean that you are likely to need advice on how to improve your cash flow, since this is essential for the financial health of your business.
Exit
Although it may seem a long way off, you may want to sell your business or retire from it eventually. For the former option, you will need an accountant to help you maximise the business value so that you can sail off into the sunset. As for retirement, an accountant will advise you on pensions, retirement plans and personal investments.
Accounting Software
If your business accounts are fairly simple and you are not sure whether or not you need an accountant, it is worth considering accounting software instead, especially with the introduction of Making Tax Digital. It is best to use cloud-based software for a more seamless and accurate experience. However, if you are looking to expand your business then it is worth paying extra for the financial advice of a real-life professional.
Conclusion
There is no question about it: your business needs an accountant. If you want to hit the big time, then the advice of a financial expert is worth every penny. However, accounting software may suffice for smaller operations. Whichever route you choose, it is important to stay on top of your finances and remember that accurate accounting saves considerable time and money for your business.
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