By: Ana Margarita Olar| Executivechronicles.com
Do you own a small business? You might think that you don’t need to hire an accountant. But, take a look at the following reasons and think twice before you say no:
TO GUIDE YOU WITH THE START-UP PHASE
There are many things that you have to consider upon starting out such as. This includes business structure, business plan, bank accounts, government regulations and location.
You might think that it’s too early to hire an accountant during the start-up phase. But, your initial business set up can have an impact on the future success of your business.
An accountant can help you in many aspects of your business start-up. You can get help to determine the appropriate business structure, the compatibility of your business plan with your budget.
You will have assistance in making financial decisions. This could make or break your business.
HELP WITH THE ENTITY FORMATION
If you are a sole proprietor with a small business, you can be fine even if you don’t hire an accountant. But given an opportunity, who doesn’t want to expand their business? At this point, an accountant can help you think through the pros and cons of entity formation.
An accountant can guide you through the transition process when you decide to make your business grow.
GUIDE YOU WITH YOU FINANCIAL GOALS
One mistake business owners do is that they will decide to hire an accountant the moment that their budget falls short. And often, it is too late to save it. According to Bureau of Labor Statistics, about half of start-up businesses will fall within five years of opening.
One reason is that the business doesn’t meet the budget goals. Having an accountant will help you reach target budget goals. They can also help you to eye out any errors and make corrections before it is too late.
HELPS YOU IN MAKING REAL TIME DECISIONS
In any business, things may not go according to plan. An accountant can also help you with this situation by guiding you to make a wise, real-time decision. Do you consider purchasing new pieces of equipment or hiring more employees? An accountant can help determine potential consequences.
Also, you’ll get steady monitoring of cash flow and expenses. This will allow you to solve hurdles that you face real time.
Finally, an accountant can help you when you plan for the future of your business.
If you want to keep running your business for a long term, you need guidance, advice, and help. So does your business need an accountant? Think wise and think twice.