Why a Good Accountant is Important for Your Business?

Shergroup

3 years ago

If asked do you need a business accountant?

You might answer, “No way.” Why spend the money when you can use an app or do it yourself using business accounting software?

We understand that whether you’re a seasoned vet or a newbie, every small business owner wants to save money. As a result, you only spend money on things that are truly important for your organisation.

Well, we’re here to inform you that employing a business accountant is both vital and cost-effective for your small business. When it comes down to it, a business accountant may save your company thousands of dollars and make life easier for you as a small business owner.

Hiring an accountant is one of the most important decisions you’ll make as a small business owner. The services of an accountant will help your business grow; the wrong accountant could be detrimental to your business’s health.

Keeping this in mind, we will help you understand when should you hire a business accountant? And how can you find the best one for your business? Follow the checklist below to find the best business accountant for you.

Know When You Need a Business Accountant

Half the job of hiring a business accountant is done knowing when you need one.

Unfortunately, there isn’t a specific period when every small business owner should hire an accountant. However, there are a few indicators that you require one.

If you find yourself in one of these situations, it may be time to look for a business accountant.

1. You’re just starting up and don’t know anything about accounting

You’ll need to know a little bit about accounting when you’re just starting your business or getting into the weeds of running it.

If you’re having trouble understanding financial accounts, preparing reports, or understanding accounting concepts, you should hire a company accountant right away.

When developing your business plan, an accountant can help you in formulating your financial strategy and educate you on how to handle your company’s finances right away. You don’t want to make any mistakes or overlook any key information early on because those blunders will cost you later.

If you’re not familiar with accounting fundamentals, a company accountant can assist you in getting started.

2. You’re deciding on your company’s legal structure

There are several options for structuring your company. And whether you choose a sole proprietorship, an LLC, a partnership, or a corporation, your decision will have an impact on your financial situation.

The legal form of your small business is an important issue that should be carefully considered.

If you choose a sole proprietorship, for example, you’ll be working as a self-employed individual and invoicing under your name. You might be able to save money on your taxes if you take this option because you can deduct your living expenditures.

3. You don’t know anything about taxes

Just because you run a small business doesn’t imply you know how to file your taxes properly. Or, more likely, you simply don’t have the time.

This is one of the best (if not the best!) reasons to hire a company accountant. So you don’t get slammed with penalties and fines, an accountant can make sure you’re paying the correct taxes for your business type and industry.

During tax season, a business accountant is likely to add the most value by informing you of the tax credits and deductions available to your company. You don’t have time to do the math and save money on taxes, but that’s exactly what your accountant does. When you work with a company accountant on tax credits and deductions, you can save hundreds (if not thousands) of dollars on your annual taxes.

4. Your business is growing fast really fast

So, your little firm has enjoyed fast growth and all of this money is pouring in.

Congrats! So, how do you deal with it now?

Accounting for small businesses is complicated, but it becomes even more so as you add more customers, vendors, and workers… It all adds up in the end. A business accountant can keep track of who you owe and who you owe, ensuring a smooth and consistent financial flow.

Furthermore, a business accountant may assist you in effectively managing your finances so that your company succeeds in the long run. It doesn’t matter if you’re fantastic at bringing in the cash if you can’t handle it.

An accountant can assist you if you’re bringing in a lot of revenue but having trouble keeping it as profit for your company. A company accountant can identify areas where you may decrease costs and better manage your money by taking an objective look at your expenses.

5. The IRS is knocking on your door

You’re unlikely to get audited because there are so many small firms and so few official government auditors. If you are audited, however, employing an accountant will save you time, money, and stress.

A company accountant can advise you on how to conduct yourself during the auditing process and provide you with best practices afterwards. When the audit is through, the government will undoubtedly be watching, so you don’t want to break any other tax regulations.

Before you are audited, it is advisable to hire an accountant who will be able to guide you through the process. However, if you don’t have an accountant and the IRS shows up, it’s time to employ one.

6. You need a small business loan

To apply for a business loan, you don’t need to be a business accountant. However, an accountant can be invaluable in assisting you with your business financing application.

Any small company lender you work with will require precise and organised financial documents. This information will be used to determine whether you are eligible for a loan.

When it’s time to apply for a small company loan, a qualified business accountant can help you remain on top of your finances.

As added perks, a business accountant can…

Answer lenders’ inquiries regarding your present financial situation and revenue predictions.
Demonstrate to your lender that you’re serious about your small business and that you’ll be able to repay the loan.
Provide you with information on the interest rates, terms, and conditions that come with your loan offer.

7. You’re about to buy a business… Or sell yours

Buying or selling a business is a big deal. Both procedures require significant financial planning.

Assume you’re purchasing a company. Before you buy, an accountant can assist you to dig into that company’s finances in-depth, looking for any red flags. You’ll want to know how much the company’s assets are worth and who owns them, as well as whether the company has any outstanding debt. A business accountant can assist you in taking a closer look at this.

A business accountant can also ensure that your financial records are in order if you’re selling your company. They can provide financial documents for your company that indicate how valuable you are to potential purchasers. Most importantly, an accountant can assist you in obtaining all of the funds due to you during the selling process. You’ve put in a lot of effort to build your company, so you don’t want to lose any value throughout the acquisition process.

Summing-up

Do you want to better the financial function of your business? Or perhaps your accounting software isn’t providing the type of data you need to grow your business. Have trouble switching from cash to accrual accounting? Are your financial statements inaccurate or incomplete? These are all good reasons to look for a certified accountant for your business.

If costs are still a concern, consider this: the time you spend filing taxes and managing your company’s finances are valuable hours that you are not spending growing your business. If you could delegate your accounting to a professional, they’d not only be able to manage your funds more efficiently, but they’d also be able to do so without making mistakes. When a professional accountant takes care of the number-crunching and financial management, you can focus on growing and improving your company.

Shergroup can help you take this problem off your desk with Your BFF Accountant business solution. Shergroup has partnered with JHW Business Services, which are Certified Chartered Accountants and business advisors. If you’re a new business owner and looking for a communicative and helpful accountant on your side in business, then talk to us. To find out more about this new solution offered through Shergroup’s Affiliate Programme please speak with our business solutions advisors today.