What do accountants do for small businesses?
Accountants do more than prepare your accounts for income tax returns and help you to keep your documents in order.
When small business owners underestimate or simply do not understand the role of accountants, they are missing out on a huge business advantage. Accountants train for years to be able to advise you on any financial concern and when you consider that you can hire an accountant for a one-time fee to help you for a few hours, it’s hard to see the downside of bringing in an expert to help you with your business.
Accountants can help you when you’re just starting out, or they can advise you as your business grows and develops. Some of the services that most accountants will offer include:
1.Writing a business plan when you’re just starting out.
If you plan to apply for a loan or rent a certain business premises, then you may need a good plan and business plan that can give you the boost you need into the industry. A solid business plan also helps you set the direction and journey of your business and helps you create and achieve your business goals.
2.Advising you on the structure of your business entity.
Most businesses start out as sole traders, but if your business grows or if you plan to start in partnership, having an accountant who understands the ins and outs of business structure can help you set up the best structure for your purposes.
3.Setting up financial software.
Even if you plan to create your own accounts, hiring an accountant to help you set up the software and discuss what you need to do and know can save you a lot of time and stress in the future.
4.Smart growth.
You might be surprised to find out that not all growth is good. If a business grows too quickly without support, then it can quickly collapse. Similarly, if your business is not carefully guided, you may find it develops in strange directions and feel out of control. Regular meetings with an accountant or financial advisor can help you manage growth wisely and grow smartly.
5.Helping you stay ahead of trends and regulations.
Rules and regulations change, as do technology and business trends. If you are focused on your business, you may not have time to keep an eye on changes and new regulations. Part of your accountant’s job is to keep up with these developments so they can advise you and free you up to focus on other things.
6.Income tax returns.
This is a big one and probably one of the reasons you’re reading this. Tax season is always stressful, especially for anyone who hasn’t been on top of their finances all year. Hiring an accountant to straighten out your books and help you with your taxes may be important if your books are not kept properly or if you find yourself running out of time or struggling to fill out the relevant forms.
7.Cash flow advice and management.
A good accountant will be able to help you control your credit and cash flow. Maintaining a healthy cash flow ensures the current and future needs of your business and can help your small business achieve longevity.
8.Reducing workload.
Even if you feel completely good at all of the above, there may come a time when your business becomes too much for you to handle without the help of an outside source. Depending on your budget and your growth, you may choose to hire an accountant for a few hours on a regular basis, or even have someone part-time.