How Working with an Accountant can Help Your Startup Grow?
How an accountant can add value to your startup
Cost-cutting is the first move that most new business owners make when struggling with cash flow or financial issues. However, deciding to take the cost-cutting challenge personally without expert help might not be the best decision.
It is always better to leave these financial complications to the experts. Experts are someone who can help you plan and monitor your financials with supporting documents, backups, models and solutions, through which businesses can reap multiple benefits by simply following the plan.
Speak to a startup accountant, accounting firm or hire them using a monthly accounting package, as getting expert help and assistance from a professional, to manage your business financially and strategically is an idea that you can always trust. Why? Let’s examine in detail
1. You take calculated risks
Matters that involve analyzing markets, examining cash flows, making financial forecasts and balancing the financial statements are a few of the very complex accounting matters that businesses have to take into account on a regular basis. However, having an expert startup accountant who knows how to deal with financial and tax complexities can be extremely beneficial for your startup. Moving ahead with your business requires taking risky and calculated decisions. With the help of an accountant, you will easily be able to calculate the risks involved. Not just that but you will be able to predict the future consequences of each business decision you take.
Utilizing an accountants expertise in your financial matters can help you measure your actual progress, this analysis will help you check whether you are still in line with your future goals and sort any discrepancies that might be acting as hurdles in your business’s path to success.
With the help of a startup accountant on your side, startup owners have an opportunity to plan their roadmap in the very beginning and set achievable short-term goals that will eventually come in line with your long-term goals.
2. You make reliable decisions
Almost every startup dreams about generating limitless profits and expanding their business. However, the lack of planning or financial support behind these decisions can negatively impact every decision. With the help of a professional accountant, entrepreneurs should be able to make reliable decisions for investments and growth. These decisions can be based on cost-benefit analysis, break-even analysis, margin analysis, and scenario modelling. All these indicators will help entrepreneurs devise a plan for their resource management and financial strategies for the future. Moreover, the indicators can promise them future profits and business expansion opportunities.
3. You see through different perspectives
Many entrepreneurs fail to realise the importance of considering multiple perspectives before making major business decisions. As a result, they constantly face obstacles, which lead to their ultimate failure to achieve the desired targets. It’s important that these business owners realize that no matter how much of bookkeeping or accounting knowledge they possess, it’s always good to see through different glasses, especially that of an accountant, professional adviser or a business consultant.
4. You save the most valuable resource, time
The last thing startup owners should be doing is, wasting time on tasks that could be easily delegated to others. For instance, tasks that require your personal time because of the delicacy and confidentiality of the data and the work. Time is a very valuable resource and in order to utilise it properly, it is advisable that business owners must hire a skilled hybrid accountant, someone who can take care of bookkeeping, tax, business advisory and growth services.
You will successfully be able to focus on your primary tasks and eliminate all of the stressful financial and bookkeeping tasks, once you hire a skilled accountant. Delegating financial responsibilities to an accountant will help you save time and money both. An accountant will get your tax right, identify possible tax reliefs and keep you ahead of your schedule.
Businesses have an opportunity to save a tremendous amount of time as an accountant can commit to a number of tasks. These may include budget planning, managing inventory, filing tax returns, preparing customer invoices, payroll management, whilst ensuring that your business complies with all government laws & regulations.
5. You get a clear picture of your business performance
Routine checks of your business performance with respect to profit generation and processes in your company is crucial to paving a smooth path for the growth of your business.
You can hire an accounting firm, to help you measure your business progress. As they can help you identify business trends that can improve business revenues and reduce business costs at an earlier stage. This identification might prove to be extremely beneficial in countering bottlenecks that might become threats later. Moreover, not addressing the issues might eventually hinder the growth of your business.
6. You keep yourself from landing into legal quagmires
The last thing startup owners want, is to get stuck in a legal web of fines & penalties right after starting their business. Bookkeeping, filing tax returns and submitting accounts are very sensitive matters that have to be dealt with properly and carefully.
An accountant by your side can help you save tremendous amounts of money, by helping you identify legal loopholes. Moreover, they can help you file your tax returns correctly and identify potential tax reliefs which you can successfully claim.
Clear House Accountants are highly competent Accountants in London, our in-house team of startup accountants hold extensive experience and knowledge in helping clients businesses to grow to their businesses while saving tax and money. We provide startups with the most tax-effective solutions that benefit them in multiple ways. We also help small businesses design optimal financial strategies, according to the nature and structure of their businesses. While we ensure that they remain compliant with government laws & regulations.
Having a competitive accountant on board will not only help you save money and time, but you will also have someone who will help you make better decisions using their experience, grow faster by utilising their network and plan ahead using strategic planning and growth forecasts.
Accountants will already be adding value to your business by helping you save money and time. However, using the numbers of your business they will also help you assess the performance of your business.
An accountant should already be advising you on the things you need to add to your business as it grows, a few of these things are:
Working Capital and Finance
Moving to the Cloud and using Technology to save time
Building and Monitoring KPI’s as part of your reporting
If your accountant is making mistakes, not responding to your calls or emails and is not adding any real value to your business, then its time to switch to a more suitable accountant.