Accountants can help a business during the different stages of growth. They can do more than just tax returns and payroll. When should a small business consider hiring an accountant?
When writing a business plan
If you are in the process of writing a business plan to secure funding or investors, consider getting an accountant who will be able to help you with the process. There are some people who will get accounting software then add projections and let it do the rest, but there is more you can expect to get by hiring an accountant at this stage. It is during these early stages that many people make mistakes because they don’t have any experience. Accountants have a lot of experience, and they could end up saving you time and money. They have done similar plans in the past, and know what investors and lenders are looking for in a business plan.
Advice about the legal structure of the company
There are different legal structures, which is usually determined by some factors. You should take your time to look at the different structures before choosing the one that will suit you the best. If you are a sole proprietor, working on a self-employment basis and having invoices in your name, then you can use your living expenses to lower your tax bill. This means you will be personally liable for any business obligations.
When working with an accountant, you will be able to understand the different options and which is going to work best for you in terms of tax and liability. This will help you avoid complications in the future.
Accounting can easily become complicated for small business. If you have a small business and you start feeling like you are starting to lose control of who owes the business, then hiring an accountant might be the best approach to take. An accountant can also help in measuring key business metrics that are very critical in decision making. You will be able to see the progress of the business in different areas over time. You can know the financial health of your business in an easy and understandable way.
When you hire an accountant, you will be able to avoid many mistakes business owners make when they do their own accounting. Your business decisions will be well informed. The decisions you make when starting your business will have the biggest impact on your business, making it important to do things right.
Visit AltitudeAdvisers.com.au to get the best accountants who will help your business succeeds.