Challenges for growing small businesses
Accountant is an integral part of an enterprise as he handles all the financial information of the company and very important person for company’s growth. An accountant can make your life easier starting from business plan to company formation and loan application to tax investigation.
There is no need to always hire a full time accountant or one on a retainer basis. Sometimes few of accountant’s hours can serve your purpose. Before hiring an accountant, you must ask yourself a question that whether you need an accountant or not, as many of the small business owners can’t afford accountants and prefer hiring part time accountants in order to accomplish certain tasks.
In case you hire an accountant to take care of your taxes, it will cost you less per hour as you would pay yourself. Taxes take much of your time & any error can land you in problem but if you will hire an expert, you will get peace of mind as expert can easily take care of your taxes and you can even focus on your other important business activities too.
You will need an advice when you write a Business Plan
In case you hire an accountant with the accounting software while writing your business plan, it’s been easy for you to add financial projections & other reports. A business plan creation on the software looks more realistic, professional and has a chance to succeed.
Hiring a professional at an early stage not only get you with the benefit of financial knowledge & advice but also saves your time & money. Hence, if you are planning to hire an accountant, hire him at an early stage rather than hiring him later.
When you need advice about your Company’s Legal Structure
Every company does not have a same legal structure as it is determined by various factors. Some are limited companies, limited liability partnerships or corporations and other being sole trader
or proprietor. They vary from one country to another.'
You need to choose the legal structure very carefully as per your requirements. For ex – Suppose you are doing business as a sole trader or a sole proprietor and invoicing under your own name. In such cases, you can off-set some of your living expenses against tax.
Doing business as a sole trader or sole proprietor is not an easy task as it involves much risk & in any case if you fails to pay a supplier, becomes a defaulter on a debt or loses a law suit, the creditor has the full right to auction your house or to take other things in possession in order to recover the amount. Hence, it is necessary for you to appoint an accountant as it provides you information regarding the legal business structure and helps in choosing the best legal structure for you as per your requirement.
When you need an Accountant to help with the finances
It’s not easy for a small business owner to handle everything on its own. If you think that you are not able to make control of things like who owes your money and how much, hire an accountant and he will help you get back on track.
Not only this, an accountant also helps in managing of payrolls and producing graphs so that it becomes easy for you to analyze how the ratio changes over time.
If your accountant uses cloud accounting software, it becomes easy for him to share business accounts with you quickly, anywhere and anytime. Accountants can easily depict the financial position of the company in the form of tables & charts with the help of cloud accounting software. This software acts as a pulse monitor for your business and keeps track of important things like cash flow.
Hire an Accountant when you are ready to delegate
Every small business owner wants to make control over his business. Setting up your own working hours, crafting your business strategy, regulating your workload and determining your own finances is a wonderful feeling. But sometimes it stops you from delegating work. Business owners feel that nobody knows their business as they does and therefore does not delegate work to others which sometimes puts you into overloading & stressful position.
Delegating your company’s financial affairs is a good start. In order to delegate a work, You need to choose a right accountant on which you can trust and who manages your company’s financial information properly.
Hire an accountant when you have to deal with the government
Many small business owners hire an accountant before the first tax filing phase as it is quite difficult to deal with government and their paperwork.
An accountant can help your company to interact with government in the following ways –
- Keeps your company data updated with the latest tax laws.
- Prepare statutory accounts
- Complete & file the required legal and compliance documents for your business.
- Always keep your company’s status updated in the government’s company register.
- Maintain the records of directors and other administrative personnel.
- Manage your payrolls and ensure that all the tax codes of employees along with their payments are recorded correctly.
- Organize and record share/stock allocation in case of business formation, leaving of a business partner or joining of a new partner.
A good accountant can help you in saving money, raising capital for expansion and even freeing up your cash flows.
Hire an accountant when you have a tax investigation
If you are involved in a tax investigation, it can be expensive, stressful and time consuming process. If you are not having an accountant at this time, hire the one immediately as accountant is the only person who can give you the best advice on how to deal with the investigation process. Accountant will also take care that you don’t violate any of the tax laws in future. With the help of good cloud accounting software, you can easily track what transaction has taken place over time & who authorized it.
You need an accountant when you apply for a business loan or overdraft
Banks always lend money to small business owners in order to collect interest and want to know when it will be paid back to them. Hiring of an accountant can help in improving your chances of getting business loan or availing overdraft facility with the help of a good accounting software. Your accountant can easily present your facts & figures to the bank which helps you in getting more funding from the bank. Accountant also helps in answering questions asked by the bank regarding revenue projection & expenses. Accountant also tells you that which loan, rate of interest as well as bank terms & conditions are favorable to you.
When your company is growing, hire an accountant
An accountant also helps, when your company grows. He not only helps you in growth transitions such as hiring of new employees or buying more office space but also look after the details of employee tax management, payroll, property tax, utility payments etc. He makes you free so that you can easily look at the big picture of your growing business.
An accountant easily analyze your cash flow, stock management & pricing with the help of cloud accounting software
. He helps you in financial analysis and also provides advice on what is the best time to introduce a new product or service?
Get an accountant’s advice before you take on a franchise
Taking on a franchise is one of the most popular methods of starting up a business specifically in areas such as cosmetics supply, car valeting, courier delivery operation, lawn-mowing & fast food restaurants. This will help you to become your own boss in return of share of the revenue or business equity. Franchise Company not only supports you in brand marketing, sales and product supply but with other important matters too.
In case you want to take a decision that weather is it right to take on a particular franchise or not. Here an accountant comes into the picture and can advise you on finding out the fees and the percentage charged so that you can easily find out your income after cost deduction.
Get an accountant’s advice before you buy a business
Some business owner’s start from the scratch but others prefers to buy running or an already set up business. In case you are planning to buy an existing business, hire an accountant as early as possible as accountants can help you by looking into that company details and ensuring that everything looks fine. Accountants can help you in checking the following details of other companies –
- Company assets are fully owned or partly paid or leased.
- Whether the company is having any outstanding debt.
- It’s good for a business owner to consult a lawyer too as lawyer & accountant can work together to understand the company you are planning to buy & run.
Get advice from an accountant before you sell your business
It is an important step to hire an accountant before selling up your business. Accountant helps maintain your financial records in order and produce statements of accounts in such a way to the prospective buyers that it has maximum chances of getting sold. With the help of cloud accounting software, you can create useful tables & charts to show data of your company in the most convenient way which takes your company into a good light. Accountant can also talk to any potential buyer during the due diligence process which is considered as a legal requirement when a business is being take over.
Accountant not only helps you in getting the most money from selling your business but also save your tax and provide you with best results.
An accountant helps you in every stage of company’s development. Hiring a right accountant will make your life easier and you can easily change your focus to other business activities. Use of cloud based accounting software helps you in tracking what your accountant is doing as well as helps in sharing each and every financial detail of your company anytime, anywhere.
How NOMISMA will help Accountants?
Nomisma cloud accounting software helps accountants in the following ways –
- It makes strong coordination between business owners and accountants.
- It makes accountants bookkeeping & payroll tasks faster.
- It allows automatic data entry and bank reconciliation.
- It helps in increasing your client base.
- It provides you opportunity to work with any business owner across the world.
- It helps in generating many powerful reports such as VAT reports etc.