If you are bootstrapping or starting a business on a limited budget, you have probably spent some time trying to figure out where you can cut business costs and do more on your own to stretch the funds you have available.
One area you may consider doing it yourself instead of hiring it out is accounting. If you have an accounting background and a solid understanding of business finances, then this may be a good place to cut costs. However, if you lack experience in managing the books of a business and expect to learn as you go, you should think twice. Managing your own accounting system incorrectly can hurt your business not only now, but also in the long-term.
There is usually a considerable debate on what an accountant is supposed to do and whether an ordinary business person should like you should solicit his services. People often believe that an accountant should only be contacted in time of great need. This is not true. You should have an accountant at your beck and call to help take your business to new heights. Sure, an accountant is a part of thebusiness when it comes to traditional bookkeeping and taxmatters,but the real thing that matters is the advice they can give you. Some of the many things they can assist you with are:
It has been suggested that you have a session with your accountant when you plan to start a business. The difference in the perspectives is the key here. He will investigate all thosetechnical, financial details you didn’t think to look up and it is better to get those sorted before you start your business.
A good accountant will be able to offer guidance on taking your business to the next level and the best way to do it, from structuring the business properly to making sure you avoid pitfalls such as overtrading. Some accountants will provide consultations for free, while others will require a retainer fee for regular contact.
Once everything has been set up and you are now in business, you shouldn’t think that you don’t need an accountant anymore because soon, you will realize his value. He takes care of all the preliminaries and finances. You can also run to him if your business isn’t doing well and you need get his advice on how to make things work. Accountants can always come up with working tactics that can be used to boost your business and get it back on its feet in no time.
Before hiring an accountant, take time to consider what your business needs. If you’re a small start-up that needs a lot of handholding, don’t opt for a firm that specializes in accountancy for multi-nationals. Make a list of all the things you’d expect your accountant to help you with, and then shop around for the firm/individual that best suits your company’s needs. An experienced accountant, for example, can advise a small business on issues such as adequate working capital, good stock control and invoicing.
An accountant knows more about the market than you do and can suggest when to make the upgrades, right deals and promotions that should accompany that upgrade. A business doesn’t.
These are just some of the ways accountants can work with small business owners. You can opt to hire an accountant for all of your financial activity, or you can choose a combined approach that limits his or her hands-on activity, reducing the expense. For example, you can hire an accountant during the start-up phase, and have him/her handle your annual reporting, but work with a bookkeeper to manage your books on a regular basis. A bookkeeper and an accountant can form a very efficient accounting team for your small business.
important thing you can do when it comes to your business finances is to
recognize when you need to enlist the help of a professional, and then find an
accountant who will help maintain the fiscal health of your business. Flourish if wrong decisions are made at the
backend so, having an accountant who knows about the financial situation of the businesscan
make things turn around for you.