Running a small business is no easy feat. and losing money in the process is the last thing any owner would want. An experienced accountant can handle the entire money-related tasks while you focus on the bigger picture. From giving advice on financial matters to helping you avoid tax problems, accountants guide you with all. But, the question is when do you hire one? Let’s find out.
You can hire an accountant before or after starting a business. However, in the case of a small business, it may be possible to handle the financial matters on your own or ask a team member to take care of it before the business is on a roll. Some may hire a bookkeeper. Things become complicated as the business grows. That is when most businesses hire an accountant on a full-time or part-time basis to stay safe in the financial market.
Hiring an Accountant Before Starting a Business
Entrepreneurs often make mistakes while launching their businesses without realizing their impact in the long run. Accountants can help you avoid those mistakes and guide you to do the right things at the right time so you thrive in the market no matter how tough the competition gets.
From curating a robust business plan to getting you registered, accountants have huge roles to play at the beginning of a business. Here are the major areas in which accountants can come in handy:
Business plan- An accountant creates a realistic business plan based on factors like risk tolerance, market conditions, etc. They help businesses get off the ground and launch successfully.
Cost forecasting- The accountant forecasts all the costs you have to incur while starting and building a business.
Business structure incorporation- There are various business incorporation options that you can opt for. A sole proprietorship, for instance, is a good option if you have no intention to expand your business or you want to operate it on your own. You can also choose a limited liability company to stay financially safe in case of business losses.
Business registration- You may have to register it for GST/HST or Payroll. Accountants use their knowledge and experience to get your business registered appropriately.
Hiring an Accountant After Starting a Business
Businesses get busier after it gains momentum. Hence, handling taxes and more complicated accounts take time and a lot of effort. Owners can delegate the task to accountants while focusing on the bigger picture.
Here are the areas in which accountants help after a business has been launched:
Bookkeeping- In the initial days, you can let a bookkeeper take care of the accounting tasks. They keep strict track of all the money that goes in and out of the business.
Taxes- The tax consultants at accounting firms can help you prepare and file tax returns, file sales tax, etc.
Government audits- Accountants can make the auditing process smooth. They can communicate with the auditor to ensure that all the required documents are up-to-date.
Conclusion
Accountants come in handy before and after starting a business. They play an integral part when you are trying to grow your business. Thus, it is always beneficial to turn to an accountant when your business is up and running.