Do You Need an Accountant? Here's What to Consider
Updated: Aug 22, 2019
If you've ever talked to an accountant, chances are that they've told you about their small business clients. Perhaps they’ve even rambled on about how much time, money, and tears their clients could have avoided if only they asked for help earlier. If you are running a small business, it is a good idea to know when you should hire an accountant so that you get a financial professional on board before it is too late. Here are a few stages in your business when you'll need to consider hiring an accountant:
1 - Starting Your Business
Starting off on the right foot is vital for any brand new company. There are so many things that can go wrong, but with an accountant's help, you can reduce the possibility of making mistakes. Here are a few things an accountant can do:
// Write a Business Plan
Some business owners may decide to wing it, but it is still better to draw up a business plan. Even if you're not looking for financial support, some landlords require this document. Not only should they know what you're up to, but you should know what your company is up to. With a business plan, you can establish a direction for your company.
// Define the Business' Entity Structure
You may decide to start out solo—a sole proprietorship. However, depending on your company's status, it may not be the best entity structure. With an accountant's help, you can decide which structure best suits you.
// Get Appropriate Licensing
There are so many licenses you will have to deal with, from sales tax permits to employee accounts. Think this is too much? It only gets worse. The location you choose to start your business will have different requirements from anywhere else. Hire an accountant and save yourself the headache. The accountant can help you determine which licenses are appropriate for your business and help you start off on the right foot!
// Set Up the Bookkeeping
Some small businesses may decide that a bookkeeper is unnecessary and choose to oversee the finances by themselves. Although this is possible, there will come a time that an actual bookkeeper will be needed to free your hands for other vital business functions. Rest well knowing that when that time comes, your accountant will be ready to help you in that aspect.
2 - Dealing with Tax and Compliance Issues
With your business plan set and done, there are some things you will need an accountant for before moving forward. Do not try to overcome the following issues without an accountant.
// Addressing Complex Sales Tax Issues
Even though there are applications and software that can help you deal with this issue, you will need an accountant to set it up correctly. Your financial professional will make sure that everything is in order.
// Addressing Payroll Problems
Even if you're a large enterprise, these problems left unattended can crush even the most prominent companies. With an accountant's help checking you up periodically, you can be assured that all is going well.
3 - Year-Round Support For You
Remember—accountants will have to come to you during tax time at the end of the year. Having an accountant work you all year long won't only make this process much more smooth, but deal with all the above issues we've talked about. Most of the problems are easier to fix before the final reports are done.
4 - Accountants Help Small Businesses Grow
If your business is already growing, congratulations! With an accountant's help, you can make sure that you are growing in the right direction!
// Grow Smarter
Did you know that even growth itself can destroy a company? Avoid this under the guidance of an accountant. He or she will let you know if you're growing too fast or heading in the wrong direction.
// Keep Your Tax in Check
Surprises can happen. A sudden surge in a business sale can really be problematic, especially if you've estimated your tax payments much earlier. An accountant will help you avoid any underpayment issues during tax time.
// See with New Eyes
As a business owner, you may believe that you know the business more than anyone else. That is true! However, with a specific pair of eyes (your accountant's), you can see your business in a new light. With new ideas from different perspectives, you will figure out new ways to grow your company.
If you’re looking for an accountant on the gold coast, get in touch with us today for a free consultation.