There are many ways an accountant can help you and your small business, probably most of which you’re not even all that aware of. An accountant can be helpful to any business, regardless of size, because having your finances in order is of the upmost importance for any company if it is to be successful.
Whilst there are some things you can do yourself, especially if you’re good with numbers, there are other challenges an accountant can help you tackle. They can guide you along your business’s journey of growth and are capable of much more beyond handling your taxes.
Although you may consider accounting as expenses that you can handle, this is not entirely true. An accountant can add real value to your small business as they will not only manage your accounts, but be one of your most valuable advisors. They would soon become an asset to your firm as they can guide you to make better business decisions, minimise tax bills legally, help in your annual company growth and save you a lot of time.
At Northants Accounting, we understand that many business owners deliberate over whether to hire an accountant, so to help you with the decision process, we have listed five ways in which an accountant can help your small business.
Advice On What Legal Structure Is Best For Your Business
You may know the ins and outs of your industry, but you may be struggling with decisions on what legal structure is right for your business. Specific types of businesses are best suited to certain structures.
You may be a proprietor or perhaps you’re a sole owner. It might be that an accountant can help you decide whether you should be a Limited Liability Corporation (LLC) or a Doing Business As (DBA) instead.
An accountant can explain you each and every aspect of your business and guide you to choose the right legal structure for its specific needs. They accountant can also help you to distinguish the expenses that can be written off on your taxes.
The accountant will also keep a tab on government policies to ensure that everything is above board, even when changes are introduced. Knowing that everything is exactly how it should be will give you peace of mind – and that is, of course, priceless!
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Help With The Main Objectives Along The Way
From the day you start your business to the day you decide to retire or sell up, your aims will no doubt change along the way. Having a solid business plan with mean that you and your business stay on track throughout the years, but putting together a waterproof business plan is not always as easy as it seems. Having an accountant by your side to help with such a daunting task can be a huge help, especially for a busy business owner. They can help you to come up with a comprehensive business plan to attract investors or to get a loan.
An accountant can assist you towards a realistic approach to increase your revenue and improve your expenses. They will also help in preventing you from making mistakes, one that can potentially cost you a lot of money.
Even if you plan on doing regular bookkeeping yourself, it is still a better option to hire an accountant so that you don’t potentially miss something important. You can even get them to train you to use Quickbooks, which is a fantastic skill in itself.
Utilise You Time Smartly
You may find that you are wasting valuable time completing tasks that could be delegated to others, including an accountant. By shifting the responsibility to someone else, it would mean you could focus your energies on important aspects of running your business.
Work out the total time spent on tasks that could be delegated elsewhere – including managing your finances, marketing your small business, dealing with customers, reaching out to potential clients and of course, hiring and firing. If you calculate that you are losing a lot of time dealing with the above, it may mean that you need to access assistance from others to minimise the workload you’re currently nestled under. Because remember, time is something you will never get back, regardless of how much money your business makes.
If you feel that you are investing too much time in managing your business’s finances, it is high time that you hire an accountant. That will mean you don’t need to handle time-consuming tasks like updating books, managing payrolls, and filing taxes.
Help In Satisfying Investors
You may have taken money from an individual or entity to start your small business. If a person invests money in your business, they expect to have a detailed report of how you are spending it. No one hands over money without consideration, so make sure that you keep them happy by regularly providing reports that demonstrate exactly how your small business is performing.
The best thing about hiring an accountant who has experience in a similar field is that they know what investors expect from a borrower. An accountant can prepare a detailed report that can impress your investors. If your investors are satisfied, only then will they feel confident investing in your business again.
Learn How To Monitor Your Revenue
There are ways to measure exactly how your business is progressing and it goes far beyond what your invoices state. An accountant keeps a proper record of each and every financial detail permitting to your small business. These include invoices, profit details and salaries. Only then will you be able to clarify what your return on investment is.
Having access to this sort of information will guide you in examining your business growth and will enable you to make the best business decisions possible.
Henry Ford knew exactly what he was talking about when he said: “Coming together is a beginning, staying together is progress, and working together is the success.” You can achieve much more by trusting others and allowing them to accompany you in your business’s journey to success.
To find out more on how an accountant can help you and your small business, get in touch with us today!