If you’re a small-business proprietor, you’re probably thriving in a relaxed, self-sufficient environment; however, the more hats you don and the more you’re not able to do effectively. Accounting is among the most critical areas for maintaining your business’s profitability. When you begin, and your business grows, the software will only get you to a certain point. Accountants in London can help your business grow. Here are the top reasons why your company needs an accountant at all phases of expansion.
Your company is in the initial phase
There are plenty of aspects to be considered when you’re starting:
- Business structure
- Business plan
- Bank accounts
- Regulations of the government
You may think it’s too early to employ Accountants Services; however, how you structure your business can have a major influence on the outcome of your business. An accountant can assist you in deciding on the best organizational structure, evaluate your business plan to determine financial compatibility and aid in making informed financial decisions throughout the start-up process so that you don’t have to shell out more money to rectify errors later on.
Your company has employees
At the beginning of your years of business, it is possible that you don’t feel there’s enough work for an accountant. But the truth is that accountants possess the expertise to help your money make a profit for you, even if you do not have a large workforce. An accountant could:
- Make sure that your employees and contractors are properly classified
- Supervise the payroll and payment processes
- Set up a timeline
Your business structure requires audits
Small businesses aren’t legally required to carry out audits. However, unless you talk to an accountant, you might not be aware until it’s late. Businesses that are owned by public entities must comply with SOX. Sarbanes-Oxley Act (SOX) and private businesses in the process of preparing to open an initial public offering may have to follow specific SOX requirements. Additionally, all businesses must comply with the local commonly accepted accounting standards (GAAP). The hiring of an accountant can help ensure that your books are compliant with the applicable regulations.
Your lender asks for an accounting statement
The Small Business Administration reports that small-scale businesses borrowed more than $6 billion in the last fiscal year. At some point, your company is likely to require additional funds to expand, whether that’s for expansion or new equipment, buying property, or even setting up the emergency funds. Before approaching any financial institution hiring an accountant to prepare an annual financial report can boost the likelihood of being approved.
Your budget isn’t enough
As per the Bureau of Labour Statistics, approximately half of all businesses fail within the first five years of their opening. While there are many causes associated with failure, failing to meet your budget’s goals will reduce the chance of your business surviving. A professional accountant to review your budget, aid in adjusting, and identify mistakes can help make sure that your budget is set for success.
How to locate an accountant?
It is possible to do a simple Google search; however, how do you determine if the accountant you choose is certified? There is a myriad of databases that contain accountants. Search for an accredited public accountant (CPA) to ensure your accountant has the expertise and knowledge you require. They have passed the strict CPA test and are authorized by the state where they operate. Enrolled agents can be another option for tax preparation as well as tax resolution. The Federal government has authorized enrolment agents to assist taxpayers in negotiating with the IRS. They are experts in taxation and accounting, while CPAs usually specialize in accounting, tax, and financial services for companies in the state for which they have been certified.