How to Know When You Need to Hire an Accountant for Your Business

An overhead view of an accountant and a business person calculating invoice while using a laptop and other helpful tools.

Accountants can help you out at various stages during the growth of your business. They can also handle much more than just your payroll and your tax returns. They are significant for helping you determine potential areas for growth by outlining cash flow patterns, inventory management, pricing, and business financing. Accountants are the source of light on financial forecasts so you can make better decisions in your business! If you’re starting out your business, it can be hard to know when you might need an accountant, so we’re here to help outline the instances in which they can boost your growth and sales. 

Write Out a Business Plan with An Accountant

If you involve an accountant while writing out your business plan, they can make use of their accounting software to add financial reports and other important reports. This can help you result in a business plan that is realistic, professional, and much more likely to succeed. 

Hiring a professional accountant early in this stage can allow you to earn the benefit of the financial knowledge of that of an accountant and gain guidance from the get-go. This can save you time and money as opposed to hiring an accountant later on. 

Discuss Your Company’s Legal Structure

It is without a doubt that not all businesses have the same legal structure. There are different types that are determined by a number of factors. Some businesses would be considered limited companies, limited liability partnerships or corporations, and sole traders or sole proprietors. You should carefully consider each type of before deciding which classification best suits you. Let’s take for instance classifying your business as a sole trader or sole proprietor, working on a self-employed basis and invoicing under your own name. If this is the case, there’s the possibility of being able to offset some of your living expenses against tax. On the other hand, this could also mean you could be personally held liable for any business-related obligations. There are upsides and downsides to each classification and both could play out depending on how you manage your business. 

Getting Help with Your Finances

Small business accounting can build up and leave you perplexed if you handle the responsibility on your own. If you feel like you will easily lose control of who owes you money and how much, an accountant can step in to help you get back on track. It may also be a necessity to measure key business metrics, such as the ratio of salaries and other employee payments to total your revenue. An accountant can help you in this situation by managing your payroll and producing graphs so you can see how the ratio changes over time. 

When You’re Ready to Delegate 

By being a small business owner, it is likely that one of the things you like best is that you have control over your business moves. You can establish your own working hours, craft your business strategy, regulate your workload (at least, for the most part), and determine your own finances. Being in control of all of these factors can be a liberating and wonderful feeling, but sometimes it can stop you from delegating. Business owners can easily feel overworked, partly due to a reluctance to allow other people to take on their workload. The inability to delegate can mean you’re left overworked and feeling stressed. At some point, you will find it necessary to have to include some extra help. An accountant is a perfect candidate to trust when it comes to your company’s financial information. Once you’ve handed over your company’s finances to someone more experienced in accounting, you will have more time to concentrate on other aspects of your business. 

When It Comes to Government Affairs 

It can be tedious dealing with government paperwork when you run your own business—but it is necessary, nonetheless. This is why a large number of small business owners hire an accountant when the first tax filing is due. Accountants can help you cope with more than just tax returns. They can help your company interact smoothly and professionally with the government in many other ways! A good accountant will be able to complete and file the required legal and compliance documents for your business, keep your company up to date with the latest tax laws, prepare annual statements of accounts, handle your payroll ensure proper recording of employees’ tax codes and payments, and so much more. 

Qualified Accountants at United Payroll & Bookkeeping Services 

Finding a well-performing accountant can be hard when it comes to the sake of your business. Here at United Payroll & Bookkeeping Services, we have the years of experience and the qualification that you are looking for! Contact us today to learn more about what our accountants can do for your business.

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