There are lots of reasons why you might want to hire an account for your start-up business or website. An accountant can help establish the legal structure of your business, provide advice on finance, and help with day-to-day record keeping. But how do you know when it is time to bring in an accountant?
It Is Time When You Need….
To set up a corporate structure.
Depending on the complexity of your business and your ambitions for it, you might want to consult an accountant to help you define its legal structure before you start trading. If you operate as a limited company, this can give you more flexibility around how you pay yourself and potential tax implications. This also ensures that the company is recognised as a separate legal entity from yourself. Doing this means your personal assets are not at risk if the business was to fail.
Putting together your accounts annually for a limited company, and the associated tax return can be complicated. It might need the work of a professional. It’s very important that you don’t fall foul of compliance requirements, as you could face fines and an administrative burden. If you employ an accountant to complete these filings, you could also save money by accurately classifying your tax-deductible expenses.
To know your cash flow forecast.
Cash flow is essential for all businesses and is one of the most common reasons for a business to fail. Put together a forward-looking 12-month forecast to help you plan properly for any potential shortfalls. This plan can also help you to identify if you need to take out a loan or raise equity finance. It’s also a useful exercise to set financial goals and targets for where you want your business to be in the future.
To get access to finance.
There are lots of different options for start-ups to find financing, including conventional loans, equity finance, and more niche options, depending on the kind of business or sector that you operate in. An accountant can help you to find the right kind of finance that is the most suitable for your business. They can work with you to put together applications and paperwork to maximise the chances of getting growth finance.
Read more about what else an accountant can do for you.
An accountant can support your business during all stages of your company’s life cycle, but you could choose to complete basic bookkeeping tasks yourself. In general, it’s good practice to spend at least a few hours with an accountant occasionally to make sure that your finances are in safe hands and being kept in good order.
Access to cloud software is also helping to change the roles of accountants to become more advisory. If you want more support, look for an accountant who is able to offer growth services such as access to finance and support in your business planning.
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Start-ups can often handle their own finances for a while, but it’s wise to hire an accountant to give you the best chance of proper money handling.
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I hope that you have found this article helpful, and will use this advice to make sure that your business has everything it needs to succeed.