When we launch a startup or open a small business, it can feel like we have suddenly become a ‘jack of all trades’. From manufacturing our product of offering our services, right through to answering the phone, performing administrative duties, and even taking care of basic accountancy, no task is too small or too time-consuming. As we begin to achieve the success we have worked so hard for, one of the wisest steps we can take, is that of hiring an accountant. Indeed, those in the know argue that we shouldn’t even consider starting a business until we have received professional advice. An accountant can suggest the most appropriate business entity for our situation, help us avoid common pitfalls, and advised us on financing and how to mitigate risks.
Important Advise on Financing
When your business reaches an intermediate stage, you often have to consider additional forms of financing to enable you to expand your products, services, or premises. Unless you deal in financial services, you can undoubtedly benefit from an accountant’s advice on which type of financing to go for. A chartered accountant will be aware of SBA loans (developed to support business growth) and be able to present various options (including standard business loans, short-term loans, etc).
You should be especially vigilant about long-term loans, ensuring you pay the least amount of interest possible, so you have enough liquid funds to invest in new
Reducing Your Tax Bill
Tax laws are continually changing, and chartered accountants are always the first to find out about amendments that could affect your business positively. Incentives, tax breaks, and new penalizations can significantly affect your profits or losses. Forms can also be time-consuming to fill in, so leave the difficult work in hands of an accountant and rest assured that your business is totally compliant with current tax legislation.
Advise on Growth
Accountants are experts at analysis; by studying your books, they can analyze cash flow patterns, make important suggestions regarding how to cut costs by varying inventory, suggest interesting price changes, and highlight ways your company can move in new directions.
Helping You with Audits
So long as your financial matters are in the hands of a qualified and dedicated accountant, you needn’t worry about having to prepare an audit if required. Your accountant will be able to offer you support and explain communications sent by the Tax Department. An audit is no reason to panic if your finances have been in order from the start.
We are all experts in our own respective fields, which is why finances should be left to a professional accountant. Issues such as our business entity, financing, and tax matters, can be difficult and time-consuming to comprehend. By relying on an accountant, we can ensure that everything is order, risks are kept to a minimum, and we invest in what we truly know: making our clients happy with products or services we believe in so much, that we have based our professional life on them.