Why good accountants are essential for start up survival
When first starting out in business, it is important to keep your costs as low as possible. After all, there are so many different things you need to fund, and things can soon spiral out of control if you are not careful. Nevertheless, one thing you should certainly invest in to ensure your start up survival is a good accountant. This may cost you a bit of money in the beginning, but it can save you far more than you spend both in minimising tax and also with advice developing avenues for growth in the long term.
If, when you first set up a business, you are concerned about escalating accountants fees you should look into fixed fee accounting services. Fixed feed accountancy helps you to manage your finances more effectively. You will know exactly what you have to pay over a year and can spread the cost by paying monthly so you will know exactly what is coming out of your account every month for accountancy fees. So you can be confident that there will be no surprises at the end of the year. Nevertheless, you do need to clarify with your accountant that everything you need is included as part of the fixed fee service.
So, just why do you need to employ a good accountant from the outset? It is quite simply because professionals have the skills and expertise needed to get your business off the ground. They can help with many different elements of setting up a company. For starters, they will help you to choose the right business structure, i.e. a partnership, limited liability corporation, or a sole proprietorship, for example. They will also help you to register your business, generate a business plan and analyse your finances. If you need to raise capital, they can provide advice on funding options that are ideal for your situation. They can also help you to file your estimated business taxes while ensuring you are fully compliant with all applicable legislation so that you never get on the wrong side of the law.
Once you have got your company up and running, your accountant will be able to help you stabilise your business, and then grow it in the future. They can help with important day-to-day tasks so that you can focus on the core of your business. This includes help with hiring independent contractors or employees, monitoring and administering payroll, and reviewing your financial statements to make sure they are in line with your records. They can also complete your tax returns at the end of the financial year and they will create yearly, quarterly, or monthly reports so you have full clarity on business performance.
When the time comes that you are thinking about expanding and growing your business, a chartered accountant will help you to take it to the next level. They will assess your cash flow sources and they will look for financing opportunities. They can also generate a financial forecast, which will give you the ability to make more informed decisions. All expenses related to the expansion will be drawn up in a new budget. And, the best news is that this merely scratches the surface of what an accountant can do for you.