Some people choose to hire an accountant before they even launch their business, while others wait until they have a substantial income that they are unable to manage on their own.
When you hire an accountant is ultimately down to you and how financially savvy you are, although the points below should all be taken into consideration.
When Writing a Business Plan
You don’t necessarily need an accountant to help you write a business plan. However, if you get one involved they will be able to use accountant software to create financial projections for your business. This can be incredibly useful if you are looking for some kind of financing, perhaps in the form of a loan or an investor. Your business plan will also look more professional, and be more likely to succeed if you create it with professional help.
When Deciding Upon a Legal Structure
When you incorporate your company, you will have a number of different options to choose from. These vary from country to country but include limited liability partnerships, corporations, sole traders, and proprietors. You may have an idea of which you want to register, however, an accountant can give you advice from a financial perspective. Some of the options may be better than others in regards to the amount of tax you pay, or the expenses you can claim.
When You Need Help Controlling Your Finances
Some entrepreneurs can complete the above two tasks easily on their own. However, when their company grows and they start to hire staff and increase their cash flow, many begin to struggle. This could be a good time to hire an accountant. A professional will be able to take over this part of your business. They will be able to deal with payroll, expenses, and cash flow projections, presenting the information to you in a clear and easy to read manner. If you use an accounting software, you can share this with your accountant to make the entire process a breeze.
When It’s Time to File Taxes
If you are able to file your own taxes, congratulations, you’re one of the lucky few. However, for the rest of us, it’s best to get professional help when it comes to filing a tax return. You may only need an accountant to check your figures to ensure they are correct, or you may need to hire someone to deal with the whole process from start to finish. Filing taxes is something that can be quite costly if you do it wrong, so don’t leave this part of your business up to chance.
When You’re Ready to Delegate
Finally, there will come a point in the life of your business when you are physically unable to do everything yourself. Most entrepreneurs are known for working long hours, especially in the early days, but there really are only so many hours in the day, and at some point, something has got to give. If you’ve reached this point, it’s time to work out which tasks take up the majority of your time. If your finances are one of these tasks, hire an accountant and make your life easier.