Congratulations, you are now part of the small business owners sector, and you are raring to get to work. However, have you thought of everything that you will need to make a good go of it? For instance, have you thought to hire an accountant to help you with your financial statements, cash flow, and business taxes? If you think that you can do it yourself with some accounting software then good for you. But have you really thought it through?
When setting up a small business, there are several crucial considerations that can significantly impact its success. First and foremost, defining a clear business plan is essential. This plan should outline your business goals, target market, competitive analysis, financial projections, and marketing strategies. It serves as a roadmap for your business’s growth and helps secure funding from investors or lenders. Moreover, legal considerations should not be overlooked. Compliance with local, state, and federal regulations is critical to avoid legal issues down the road.
Another crucial aspect is financial management. Carefully budget your startup costs and ongoing expenses, and consider how you’ll fund your business, whether through personal savings, loans, or investors. Keep meticulous financial records, separate personal and business finances, and establish a business bank account. Marketing and branding are also vital. Develop a strong online presence, create a memorable logo, and have a clear value proposition that differentiates your business from competitors. Finally, hiring the right team and building relationships with suppliers, customers, and partners can be pivotal to the long-term success of your small business. Be sure to assess your staffing needs, hire the right people, and nurture strong, mutually beneficial relationships with key stakeholders.
In addition to the previous considerations, small business owners should carefully assess property and warehousing needs. Selecting the right location and facility is crucial for operations, and efficient warehousing management is essential to control costs and ensure smooth logistics. It’s a good idea to look into industrial appraisals Red Deer (if that’s where you’re based) when you’re looking to set up your warehouse. It’s vital to integrate these factors into your business plan, financial management, and long-term growth strategy.
In this article, we will discuss why you might need to hire an accountant for your small business and when you may not need one and are able to do your own accounting for your small business.
When is it Best to Hire an Accountant?
You may think that accountants are telling you that you need them no matter how small your business is because they want to be hired, but, that is not necessarily true. They have extensive knowledge in this area and they have seen the whole spectrum of different businesses, so whether you are a large business or a small business, they want to have you succeed.
Writing a Business Plan
When you are looking to secure business funding, putting in for an office lease, or any building space, an accountant can help with writing your business plan. This will also give you structure and make your business life easier when you are putting your plans in motion. When it comes to your own business, striving for a cost-effective approach within your plan is imperative. This Strategic Planning not only allows you to visualize the bigger picture but also enables you to streamline operations by eliminating time-consuming tasks
Helping With Your Businesses Structure
Quite a few businesses will begin as sole traders and then adapt as they expand or adjust the direction of their business. If you need to modify this due to your financial situation, then an accountant can assist with this by helping you create an LLC (Limited Liability Company) for you to trade as a freelancer so you are protected not only legally but financially too.
Help You With Accounting Software
You may be searching for additional help like bookkeeping services when you start up your small business, however, from the start, you won’t need to have one right away as Billie Anne Grigg has mentioned on the website Fundera.
There may come a time when you will need to get a bookkeeper to help you consistently, but initially, you don’t need one. You may wish to do your own bookkeeping and then only bring on a bookkeeper to check what you’ve done every so often.
What Else Can They Do?
Above are a handful of things that accountants can do for you, but it is important to know that this list does go further. For instance, not only can they help with getting your business finances together, but they can construct financial reports such as quarterly financial reports, do a financial analysis of your company’s accounts, and make sure that all tax filing is done correctly and when tax time comes around. Yes, accountants can help you prepare accounts and file taxes. However, if you are looking to work with someone who can help you improve profits, pay less tax and free up time then you need a specialist like these hornchurch accountants.
You may be a small business owner but you have to realize that as your business grows, things will change, and the need for a full time accountant to help you with your annual statements and other reports becomes highly required.
Questions to Ask Yourself
Before you decide to outsource your accounting, there are some questions you need to ask yourself, for instance, will you be in need of a certified public accountant (CPA) or just a bookkeeper? They are differently skilled, so you will need to think about what you, the small business owner, will need when delving into the world of business finances. So, to answer the question “why do I need an accountant for my small business?” read on.
Can I Handle the Accounting Technology?
Businesses nowadays cannot run without technology, and the use of software has become especially important as a lot of work is done online which includes doing your company’s accounting. There are accounting software systems that will benefit you, but can you maneuver them?
You need to keep track of your invoices, accounting tasks, customer payments, and so on, as well as make sure they are all recorded properly. If you feel like you cannot do that whilst running your business daily, then outsourcing to an accountant will aid you greatly, especially if you are a sole trader or self employed.
Do I Have the Time to Get it All Done?
If you are your own boss who is on the road a lot, do you have the time to manage your company and accounts at the same time? Can you run payroll at the same time without any delay to your employee’s pay?
Many small business owners will not be able to do everything all at once, and if you find yourself struggling with it all, then it would be wise to hire a good accountant to handle your finances.
Can I File My Taxes Correctly?
Doing your taxes is incredibly important for a business, you need to be current on your tax planning as well as understand the tax laws in your state so that when you are doing your tax filings you are making sure you are providing the correct records to be taxed accurately.
If you think that you cannot do this efficiently, then hiring a small business accounting expert may be a good idea as they can help you get things in order. An accountant can prepare your tax returns leaving no room for mistakes.
Can I Actually Afford One?
You probably have been mulling this question over in your mind a lot when it comes to picking an accountant. If you look at your business finances and see that you need help with the management of this side of your business, then it is worth the money.
Accountants can help with setting up your accounting system as well as make sure that your company meets regulatory compliance with its practices. They can save you time on things like recording transactions and assisting you with big picture stuff like making proactive financial decisions. You won’t have to waste time in areas that will take you away from progressing your business. You could save money utilizing them.
When Don’t You Need An Accountant?
There could be a time when you do not need to have an accountant for your small business. This, however, needs to be thought through properly before making a final decision. Look below at instances where you may not need an accountant to help manage your company’s finances.
It’s a Hobby/Side Hustle
If you are doing this as a small hobby or side hustle that is not exactly bringing a lot of cash into your pocket, then you more than likely will not need an accountant. Just make sure you keep track of all your incomings and outgoings so you can file your taxes correctly. Guessing will get you nowhere. If you want to make sure you are doing everything by the book, then do your accounts properly.
You Are Freelancing
Being a freelancer can be very…freeing! If you only have a handful of people that you deal with then you can do this by yourself and produce statements that are in line with what you have coming in. It may look simple with only a small group, but it can get out of hand if you are not on top of it. You should get into a rhythm after a little bit.
Conclusion
Hopefully, as you have read through this, you have come to a decision on whether you will need an accountant for your small business. Whatever your choice, speaking to a professional can provide insight into if hiring an accountant would be the best choice for whatever stage you are in with your business. Before you commit, ensure that you have picked the right accountant to handle your money.
