A lot of businesses try to manage their accounts in-house, whereas working with an outside agency or a freelancer can be much more effective. An accountant can help to 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’s time to bring in an accountant to help you?
Setting Up Corporate Structure
Depending on how complex your business is and what your goals are for it, you might want to consult an accountant to help you define the legal structure of the business before you start trading. If you operate as a limited company, this can give you more flexibility around tax implications and the way that you pay yourself. Doing that also means that the company is recognized as a separate legal entity from yourself, so your personal assets are not at risk if the business was to fail.
Statutory Accounts and Tax Returns
Putting together your accounts every year for a limited company, and the tax return that comes with it can be complicated. It might need the work of a professional. It’s very important that you don’t get your taxes wrong, as you could face hefty fines and an administrative nightmare. If you employ an accountant to complete these filings, you could also save money by accurately classifying your tax-deductible expenses. You can find an accountant who specializes in your industry, such as a dental CPA, and make sure you get expert help.
Cash Flow Forecasting
Cash flow is important and is one of the most common reasons for a new business to fail. An accountant can put together a forward-looking 12-month forecast to help you plan properly for any potential shortfalls. This plan can also help you to work out if you need to take out a loan or raise equity finance. It’s also helpful for setting financial goals and targets for where you want your business to be in the future.
Access to Finance
There are lots of different options out there for start-ups to find financing, including conventional loans, and equity finance. An accountant can help you to find the right kind of finance that is the most suitable for your business, and help you to secure it. They can work with you to put together applications and paperwork to maximize the chances of getting the financing you need.
An account can support your business during all stages of your company’s life cycle, but you could decide to manage your basic bookkeeping tasks yourself. It’s a good idea to spend at least a few hours with an accountant every so often to make sure that your finances are in safe hands and being kept in proper 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. 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.