When starting a business, you’re preoccupied with so many things, and hiring an accountant is probably not one of them. Many new entrepreneurs think that an accountant is only necessary once the business takes off and starts bringing in a regular profit.
At this point, many of them are confused by the financial terms used by accountants and might think it’s all a bit unnecessary.
But by the time they actually hire one, they are often already deep into financial problems or are facing large fines because of missed deadlines.
An accountant is a valuable asset even for startups as it’s crucial to keep your records in order from the beginning.
Besides, it is always better to have an expert guide you through the complex world of finances and taxes as you learn to navigate the entrepreneurial waters.
In this post, we talk about the importance of having an accountant from the beginning and how this could save you many headaches.
Setting Up a Business
Having a great idea and a great product is wonderful but not enough. For a business to succeed, each step you make should be carefully considered from the start.
An accountant can help you with the very first step of starting a business: choosing a business structure.
When setting up a business, you need to choose between registering as a sole proprietorship, limited liability company, or another type of business structure. Each of these structures has its own implications and if you’re not familiar with them, you might end up making the wrong choice.
An accountant can give you sound advice on which business structure would work best for your small business based on the expected income and the taxes you would need to pay. With professional advice, you can save on your tax bill right from the beginning and avoid surprises later.
As with most startups, securing the funding is the most important part and a pretty difficult one too. If this is your first business and you’re rather inexperienced when it comes to financing options, seeking professional advice is the best way to go here.
An experienced accountant will know all about financing options available to you and can advise you on the ones you should apply for.
Whether it’s getting a business loan from a bank or finding investors for your business, an accountant’s help can make all the difference.
In case you’re seeking investors, having an accountant and clean financial records from the start can only benefit you in your search for financing options. It shows that you’re a serious entrepreneur worth investing in.
Sorting out your taxes is probably one of the most challenging parts of every business, especially if you’re going through it alone.
Making mistakes here is bound to occur sooner or later. Many businesses fail to register for the right taxes, miss the tax deadline because their books are messy, or miss out on many tax deductions simply because they’re not aware of the benefits available to them.
What might seem like a small mistake can result in a hefty fine you must pay, and small businesses often can’t afford that.
A skilled accountant will ensure that you pay the right taxes, avoid paying what you don’t have to pay, and take advantage of all the tax benefits available to you. More importantly, they will help you avoid fines and penalties you could face otherwise.
Having an accountant right from the beginning means you won’t have to go through the hassle of calculating your taxes and worrying about deadlines as they will take care of everything leaving you to worry about growing your business.
Starting a business is stressful enough without having to worry about bookkeeping and taxes. For new business owners, especially those with 9 to 5 jobs, managing everything on your own is nearly impossible.
Keeping your books in order and dealing with taxes requires not only knowledge of the local laws but also a significant amount of time. In most cases, business owners don’t have the time for that so they hasten things and end up making mistakes.
Not to mention feeling exhausted all the time.
A skilled accountant can save you trouble and free up a lot of time to focus on what matters. Not only do they save you time but also energy.
Planning for the Future
Perhaps your business is flourishing at the moment. What are your plans for the future?
Many business owners get caught up in the present and are overwhelmed with current issues to plan for the future. Will your business be able to survive what might come?
An accountant can do more than help with your tax planning and record keeping. They can help you plan for the future by ensuring you make the right decisions from the very beginning.