There are many points to consider when you are about to start up a business – to the point that it is easy to oversee certain aspects of what you really should be doing. From organizing the plans, to getting the loans from the bank, and from securing a physical location (or a digital presence in today’s world) to thinking about the employees, there is a lot to be done. And if you want to start out small, it is especially easy to not factor the financial aspects of the new business properly.
The first time you will be thinking of hiring an accountant for the business would probably be by the end of the year – when you have to deal with tax returns. But instead of waiting until the end of the year, it is recommended to get an accountant involved in your business as soon as possible. And by this, we mean as soon as you decide to start up the business! Most accountants do provide consultation services as well, and they can easily become an important asset for the business if you let them on board earlier (because they will be more acquainted with how your business works). Below are two good reasons to hire accountants as early as possible:
They provide legal advice: besides their usual duties that revolve around tax, accountants also provide valuable legal advice – that is, they can explain the legal semantics and business terminology that you are bound to run into as you fill out the documents to start up your business. For example, unless you have learnt about commerce and business studies, there is a good chance you do not exactly know the difference between the many different kinds of companies. Most small business owner’s start as sole proprietorships or sole traders, but you would not know that in case the business goes under, you still remain liable to repay the creditors of the business! This is why it is important to correctly understand what each kind of company is, and what their advantages and disadvantages are – and an accountant is a good way to make sure of that.
They can help you with your business plan: most banks and lending institutions require you to present a viable business plan before they agree to cede funds for your company. Therefore, creating a sound business plan is something that any and all business owners should attempt to. An accountant can help you with drafting a business plan, and also, enhance it into something better. How so? Simply by adding reliable graphs and financial information that is based on analysis and predictions. The addition of these can greatly increase the reliability of a business plan.