Determining the Optimal Time to Hire an Accountant for Your Business
Getting the best insight into the finances of your business is one of the most important
aspects of a thriving modern company.
Not only can tracking your finances help you to generate more profit, but it can also help your business plan ahead to ensure a stronger fiscal future.
For a small business that plans to be around for a long time, hiring an accountant to help
guide and advise you during pivotal moments of your business can be invaluable.
But when is the right time to hire an accountant? And why is it so beneficial?
Below are some of the most vital moments when an accountant can provide you with
Assessing Your Business Needs: Deciding on the Right Time to Hire an Accountant
When getting Accustomed to New Technologies
With the world becoming more digitised by the day, and advancements making time-consuming tasks take seconds to complete, many forward-thinking companies have begun to explore which innovations they can use for their business.
And with accounting software now offering fast and accurate alternatives to manual admin, it’s worth hiring an accountant to briefly go over any concerns or queries that you may have about utilising them.
When the Financial Position of your Business Needs to be Established
While the beginning of your business may have some clear strategies and plans in place to keep on top of your financial situation, external forces and added responsibilities that come with running a business can quickly pile up and distract you from the day-to-day aspects of the bottom line.
By bringing in an accountant when you feel like you’ve lost track of these things, you’ll gain insights into a wide range of company finances condensed down into one easy-to-digest report.
For management teams, this provides accurate details of the company profits and other variables that they can use as a template to work from in the future.
To Assist with Tax Audits
Getting audited by HMRC is something that every business needs to take into consideration.
Depending on the industry you’re in, there’s even the potential for your company to encounter tax audits on a regular basis.
Not only are tax audits an essential part of ensuring all companies adhere to their specific regulatory rules, but it also ensures that you receive any rebates owed when you’ve paid too much tax.
Failing a tax audit is no joke, and can lead to significant penalty fees and fines.
By hiring an accountant to assist with your audit during these times, you’ll be able to have a much clearer picture of what to expect and how accurate your company’s payments have been over the course of the tax year.
In turn, this makes your balance sheet accurate and your business as a whole less apprehensive about any external audits.
Before Applying for Grants or Subsidies
Many initiatives are available to small businesses courtesy of the government in terms of grants and subsidies.
Suppose you’re running a start-up enterprise or planning to do so in the immediate future.
In that case, there’s a whole slew of financial opportunities available to apply for, which can help to bolster your brand and give you a significant advantage before your first year has even ended.
Unfortunately, the application process can be extensive and time-consuming.
For a small business already swamped with responsibilities and tasks, there’s not enough time to give the attention needed for a successful application.
But having an accountant in place during this time can reduce the worries of applying and make sure your application has everything required before being sent out.
When you Publish your Annual Finance Reports
For larger-scale companies, the annual financial reports can become a significant but nonetheless difficult part of running the business.
Keeping a board or shareholders up to date with extensive and detailed financial reports is vital to any business with investors and other financial entities that they need to answer to.
With an accountant working alongside your business, you can alleviate some of the pressure that comes with having to create comprehensive breakdowns of your fiscal matters in a clear and concise manner.
Not only will this provide some useful clarity in terms of your organisational expenditures, but it will also improve the confidence of your shareholders and board members.
When you first Start your Business
Small businesses can rely on an accountant during those stressful and difficult formative business years, especially when it comes to understanding how the finances of their company work.
And having the insights and guidance that an experienced accountant can bring to the table helps a new business to remain thorough and efficient at the same time.
By putting the business on the right foot at the start, an accountant can set the tone for how those initial expenditures are handled, helping you secure the right balance between staffing and revenue while exploring any cost-saving opportunities.
Knowing when the right time is to bring in an accountant gives you the resources and understanding to deal with your finances promptly, accurately, and with ease.
And for any small to medium enterprise, poorly maintained financial records can be potentially disastrous to the reputation of your business.
By working with a qualified accountant during those pivotal moments in your company, you’ll be able to maintain a stronger business path while adhering to the fiscal rules and regulations within your industry.