Why Hiring An Accountant Is So Important?
“The word accounting comes from the word accountability. If you are going to be rich, you need to be accountable for your money”
By Precious Mvulane
We’re working our way through the seven steps to getting your business finances 100% in order – as laid out in the Essential Finance Handbook For Entrepreneurs. The first step was about setting goals. The second step was about selecting an appropriate structure for your business. The third step was understanding your legal obligations as a business owner, and the forth step was understanding finance as a core business function. The fifth step pertains to understanding the key role players in financial reporting.
But when it comes to the problems, stress, and uncertainty of owning a business, hiring a professional accountant may often be the best solution – one that saves money in the long run. The most important ways an accountant can reduce your workload and increase your peace of mind are:
- Starting on the right foot
If you want to grow your business at a healthy pace and focus on doing what you love, rather than spending costly hours putting out fires every day, you want to put systems in place that will support your success from day one. A good accountant can assist you with setting up your accounting properly and choosing the best accounting software for your business.
- Tracking your numbers
Another solid reason to find and work with the right accountant early on relates to your financial reports. Having an expert set of eyes trained on monthly reports can be invaluable.
Business owners are the busiest people. And most would need several extra hours in the week to fit in the kind of financial analysis that accountants often perform. Consider the advantage to your bottom line of having a dedicated and knowledgeable person on your team who can help you keep an eye on the most critical numbers, learn from them, and act on them.
- Meeting deadlines
Depending on your business structure and the type of business you’re in, there are multiple deadlines every month of the year. And for every reporting deadline, there are unfortunately corresponding fines and penalties for filing late.Having your own accountant means these deadlines won’t sneak up on you, and you’ll be in a better position to avoid the last-minute rush.
- Making informed decisions
A business owner is adept at juggling many roles at once – from acting as hiring manager one minute to head of marketing the next.Youwill appreciate thatthe more information you have at the time, the better the decisions you will make.A good accountant will help you have this information on hand when you need it.
- Year-end reporting
When it comes to closing out your books at the end of the year, a few small changes can make a big difference to your bottom line.It’s also time to look at year-long financial reports and perform a complete health check on your business. An accountant can be one of your best assets in this process.
- Managing cash flow
All business owners know, cash flow can make or break any business. Behind every healthy business is someone who keeps abreast of the cashflow situation.An accountant is there to help you minimize unwelcome surprises and plan ahead for maximum profitability.
- Staying informed
Business regulations and tax laws that relate to your day-to-day operations, all regularly change. Knowing the financial and tax implications of all these changes is part of the business of accounting.A good accountant can save you hours of reading and searching for the best, most up-to-date information, freeing up valuable hours for you to run your business instead.
- Managing growth
It’s the irony of the business world, but it happens every day: too much growth too quickly can kill a business. Planning ahead, by having a clear picture of the implications of any changes you may make, is crucial in this process. Accountants can easily provide this information to manage growth successfully and prevent disaster.
- Avoiding costly mistakes
Hiring an accountant is the best way to ensure you’ll know your numbers inside and out in order for you navigate your business forward.
The right accountant and an orderly accounting system will save you time and money in the long run, allow you to put your energy and focus on what you do best, and position your business for maximum profitability and success.
Going it alone might not be your best bet!
“Accounting is the language of business”