• New Wave Accountants

Are You Buying a Small Business? Hire an Accountant First

When you suddenly become a business owner, you get employees, real estate, assets, and finances.


You will most likely feel anxious, burnt out, and frightened if you do not know how to manage these components.


This is what business sellers are afraid of, since they would rather see you preserve the company's image and make it successful.


Working with an accounting firm is a crucial strategy to guarantee that you are well-equipped whenever you take over the organisation.

When Should You Hire an Accountant to Buy a Small Business?


Getting accounting help can be beneficial in several ways, such as:


1. Sorting Out the Books


Since small businesses have different financial quantities, you will need the help of an accountant to look over the numbers.

The small business books can be complex and hard to understand.

Business owners tend to be busy, which means they may overlook accounting details and make mistakes in their records. If you take over the business, you need to follow the books to ensure they are accurate and within legal requirements.


You will need your accountant's help to sort out things such as:


  • Reconciliation of bank accounts,

  • Timely filing of BAS and tax returns,

  • Updating of records,

  • Cancelling of insurance policies and wages, and

  • Attending to any legal actions that need to be handled.

  • Accountants can even sort out the books for a new business, giving you a head start.


2. To See if the Business Has Been Profitable


Accountants can help by going through the records available to check if the business has been profitable. They can also help you make projections based on the past and current business operations. Your accountant can also tell you if any money has been embezzled or misused by staff members. Accountants can make the task of sifting through the business books much faster and easier.


3. To Determine If the Business Has Been Operating Legally


Insolvencies and liquidations often lead to auditing investigations.

Accountants can help by identifying if the business has been operating legally. They can advise you on any problems that need to be resolved. Your accountant will also be able to help you make sure that you don't continue any illegal practices in the business.


4. To See if the Records are Well Organised


As you would be taking over the business, it is crucial to see if the records are well-organised. You need to see if the business has been operating within the law and whether it has been paying its taxes on time. You have to see if the business is able to make more money. Accountants can help by organising the financial records. Doing so will make it easier for you to take over the business.


5. To See If Any Adjustments Need to Be Made to the Records


Accounting helps make it easier for business owners to stay compliant with the law. You will also be able to see if any adjustments need to be made to the records. This can help reduce your tax obligations and make it easier for you to manage your business. Accountants can help decipher the financial statements and make suggestions to help improve the chances of your business's success. Business owners can sometimes get too caught up with the day-to-day running of the business that they do not have time to keep up with the accounting side of running the business.


Conclusion


In conclusion, hiring an accountant to help you buy a small business is an excellent idea. However, you must ensure that you find a qualified accountant with experience in dealing with small businesses. You should also ask them to provide references from other clients they have served.


Accountants can help you sort out the books, see if the business has been profitable, see if the business has been operating legally, organise the business's records and make adjustments to the records.


Give your business a solid accounting foundation with the help of some of the best accountants in the Gold Coast. We at New Wave Accounting provide end-to-end accounting and bookkeeping services specifically focused on helping you scale and grow your business. Work with us, and we'll create solutions tailored to your needs.


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