There are different reasons why businesses utilise the services of an accountant, especially at various phases. Your enlisted accountant can help you with everything from business planning to the legal structure of your company, and they can also help you with loan applications, tax returns, and more. You may not require an accountant to work with you full-time; you may just require one for a few hours each month or even just once a year. But when should you rely on an accountant for your business? Here’s your crucial guide.
- When you need to write your business plan
If you enlist the help of an accountant when you are writing your business plan, they can make use of the proper accounting software so they can add projections and financial reports to your plan. This will help you come up with a plan that is more realistic and attuned to what you need, and it’s a business plan that is guaranteed to be more professional and can pave the way for your success as well. At this early point, you can already get the benefit of an accountant’s expertise and knowledge, and it could save you a lot of time and money in the present moving forward into the future.
- When you need guidance regarding the legal structure of your business
You may already know that not all enterprises will have the same structure – different businesses will have different structures depending on certain factors. Some can be limited companies, while some can come under a limited liability partnership, a corporation, and so on. Others are simply sole proprietors or traders. You should think carefully about each structure before you decide on what’s best. For instance, if you are under a limited liability structure, your business’ liability is limited to your business’ assets, not your personal assets, as confirmed by central London accountants such as Griffin, Stone, Moscrop & Co. A good accountant should give you a thorough explanation of each structure and help you select one that will be the most suitable for you.
- When you need someone to handle your finances
Even if your business is still small, your accounting requirements can be complex. If you are not sure regarding aspects such as accounts receivables and payables, your accountant can steer you in the right direction. You may also be considering measuring your business metrics, like employee salaries and payments as opposed to total business revenue. Your accountant can assist you with this since they can manage your payroll and produce reports and graphs that show changes in your business ratios over time. Since accountants make use of cloud-based accounting software, they can readily share data with you and come up with charts and tables that can show your company’s financial status at a glance. With this, you can more easily monitor your business’ pulse and keep a close eye on other matters such as cash flow.
There may come a time when you are thinking of delegating, and you want someone you can trust who can work with you and keep your affairs in order. An accountant is ideal for delegation because once you have your finances in better control, it is easier to control the other aspects of your business’ operations as well.