19 Nov
When should you think about hiring an Accountant?
When should you start thinking about hiring an Accountant
An entrepreneur has to focus on multiple tasks at different periods in your business, these can be from sales and marketing to more junior roles such as the role of a bookkeeper or data administrator. What you need to realise however is that no task is an unnecessary task, even the most menial tasks can be the key to building a strong business foundation.
Is it not feasible for business owners to solve all business problems by as these can be delegated or outsourced to other employees or 3rd party service providers letting the entrepreneur focus on the main tasks, which will include but is not limited to things such as business growth, an exit strategy for the business and making sure that the company is moving towards a single desired vision.
Hiring an expert such as an accountant can save you a significant amount of time and money, as the accountant can fulfil your bookkeeping needs, submit your income tax filings accurately and provide you with a monthly snapshot of the financial position of your company. If you still prefer to do certain tasks such as bookkeeping yourself you might want to learn the key bookkeeping terminologies.
Related: You might want to read 11 Ideas for effective Bookkeeping
It is very important to know when to hire an accountant because as a small business owner, you might not have sufficient funds to hire an employee to fulfil your firm’s bookkeeping and tax needs.
Writing an effective business plan requires expert counselling
Every business owner must have a business plan that states the desired goals and objectives. A business plan will keep you on track without which you can lose track of your ultimate business goal. Involving an accountant at this point would be a wise decision, their expertise, skills and business experience will be key to preparing an effective business plan.
Related: You might want to read about the 10 Best cloud accounting softwares
It is always a wise decision to hire a professional accountant from the very beginning, as in the long run, you will need to have sufficient financial knowledge and expertise to grow your business. You might not think that an accountant might be relevant to your business when starting up as your focus will be on developing a good product, getting more customers, however, what good businesses realise early on is that a good accountant can help your business grow. You should carry out careful research on how to find the best accountant for your business, as this will be a very important decision for your business success.
Related: How working with an Accountant can help your startup grow?
Manage your finances effectively by hiring an accountant
Financial management which includes measuring cash flow, debt and resource allocation, can become somewhat tricky. Therefore consider hiring a nearby accounting firm, business accountant, online accountant or chartered accountant, to help you stay on top of your finances.
Delegate tasks to an expert
Business owners have performed a large number of tasks. They might believe that it is them and only them who understand their business really well and might not be willing to take a risk with other people, just to retain control over quality. However, being an entrepreneur you need to be able to identify the most suitable candidate for the relevant business role. Expect no harm when someone is more qualified and has more experience in handling a particular affair of your business, say, accountants, who can add value with their accounting expertise, or an HR expert who can help you hire more effectively. Delegating to experts will save you time, reduce errors and save you money in the long term.
Be prepared for the Taxman
The UK has seen an unprecedented rise in the number of startups and small businesses starting up over the recent years. The government has been fairly strict in chasing for tax liabilities, missed payments or incorrect filings. It is, therefore, better to have an accountant if a tax investigation arises.
To avoid fines and penalties, it is wise to hire an accountant as early as you can. By having an accountant on board early on, you can organize and compile all of the relevant financial and tax records in case there is ever an investigation. They will guide you through the investigation process and will ensure that you stay compliant with HMRC’s tax requirements.
“Tip: Our Tax Investigation Fee Protection Cover can provide you with an absolute peace of mind“
Consider an accountant’s expertise whilst applying for a business loan
Acquiring a business loan has become extremely complicated after the great recession in 2008. It is therefore required that business owners create an accurate business plan supported by facts and figures which confirms that the business is able to pay off its debt. Having access to an accountant who has the right expertise can make the loan process far simpler.
Related: Read about the different sources of funding available
You’ll need an accountant when growing your business
In order to grow your business, you need to have access to positive cash flow, an accurate forecast and effective strategies such as profitable pricing strategies etc. By having an accountant on board, you will get the precise insight into how much additional employees will cost, how much you need to charge your customers, what you should be spending on marketing etc.. They can also help you manage payroll, employee tax, corporation tax, income tax, etc. and help you devise the most suitable employment and financial policies that will help your business grow.
In addition, by using cloud accounting software, an accountant can help you examine your pricing policy from a different perspective, help you conduct an analysis of your cash flow and help you manage your taxes.
“Tip: One way we help businesses grow is through our intuitive Growth Portal“
Accountants will be there for you at each business stage
You need to make your business journey easy so as to execute your business model effectively. Most businesses fail due to the ineffective execution of their business model as they get distracted by menial tasks such as admin work or data entry. A competitive accountant can add much value here, they have connections and resources that can help you plan effectively, control costs and delegate work which can take focus away from you, making things easier for you. What’s more, is that the savings they achieve for you will be more than enough to cover their fees, so try and find a good accountant nearby.
Clear House Accountants are specialist Accountants in London who have years of experience working with businesses, sole-traders and high net worth individuals helping them save time, money and grow their businesses. Speak to us to learn more.