It is often times the misconception of small business owners that it is the nature of their business (small) which conveys the fact that they don’t need an accountant. When the business is just starting out, it seems completely plausible to do the finances yourself or to have someone you know handle the books.
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Signs You Need to Hire a Professional Tax Accountant
However, the truth is that when you first start out is when your finances are most vulnerable. There are many reasons for which you should consider hiring an accountant to help you establish a foothold in the world of business finances.
If you’re on the fence about making this decision, we can help you make up your mind by presenting you with some pros and cons that come with hiring an accountant this early into your business development. Keep in mind that there are many small business accountant solutions out there, meaning that once you’ve made up your mind, you can immediately start researching the best pick for you.
1) Pros of accountants in small businesses
One of the most important advantages that come with having an accountant for your small business is the fact that they know what they’re doing. You most likely haven’t professed as an accountant before so doing your own finances can be messy, inefficient and it can slow down your business growth considerably. That’s just something you absolutely cannot afford so early on.
You need as much free time as you can get
It’s more than just having someone do your work for you. It also implies that you would be free to manage the other areas of your business and to focus on what you do best. If besides being the owner you also occupy an active function in the company, you can focus on that and thus help the business grow with the help of your skills in that particular area.
Wasting your potential to improve the business with something you’re not really good at or inclined towards (accounting) will really hurt your endeavors. An accountant can easily take care of that problem for you.
The advice you didn’t know you needed
An accountant can be much more than just the person who handles your books. It can also be the person that gives you financial counsel.
If they are experienced, they will be able to tip you on opportune moments to make an important move in the market or the reverse, warn you when the market is about to get dangerous so that you can play it safe. This is well over your investment when it comes to how much worth it hiring an accountant was.
2) Cons of accountants in small businesses
If you are a startup or a freshly founded company, you might not have a lot of funds to spend in the very beginning. This means that having to put up an accountant’s fee might strain your budget tremendously and thus make business difficult for you, to the point where your accountant would suggest giving him up.
Of course, this differs from case to case and it depends on each individual case whether or not an accountant’s salary is budget-sustainable.
That’s pretty much it, just one con and multiple pros in favor of an accountant in a small business environment. In conclusion, if your budget can take it, hiring an accountant can be a highly beneficial move for the company. 🙂