Running a business is never easy; things can be even more difficult if the business is a start-up. You will most likely be busy trying to bootstrap, cut costs whenever necessary, and stretch out your limited funds.
While doing this, one of the mistakes you should avoid making is thinking you can take on the full management of your business’ finances and accounting by yourself in an effort to save money. Unless you’re an experienced accountant, all the financing and accounting aspects of your start-up should be handled by either an in-house accountant or an outsourced accounting firm like Sloane Winckless & Co.
Still on the fence about hiring an accountant for your start-up? Here are some of the top reasons why your business start-up is bound to require the services of an accountant.
Choosing the Right Business Structure
Is your start-up going to be a sole proprietorship or an LLC? Each type of business structure has its own unique benefits and downsides, including various tax and legal implications. An accountant understands this and can help you choose the best possible structure for your business.
They can help you choose a business structure that is in your best interest at a particular time and as your business grows, they can help you make any necessary changes to its structure.
Creating a Marketing and Business Plan
Many don’t know this, but creating a comprehensive marketing plan should actually come before a business plan and an accountant can help you with this. It is this marketing plan that will tell you if your business venture is feasible or not.
Once your marketing plan shows adequate rationale (the proposed business can substantiate the required investment based on profitability) for launching your start-up, then your accountant can also help you create a business plan, which is basically a blueprint on how to build the business.
Budget creation is another critical aspect of a start-up. It is done to identify the elements (operations) of your company (marketing, hiring new staff, product/service upgrades, and purchasing equipment) that require various expenses. Having an accountant on hand ensures that the right amount of money is allocated to each of these business operations.
Planning, Monitoring, and Controlling Cash Flow
At the start of your business, knowing how much cash is needed to reach profitability is very crucial, and an accountant is needed for the process. This is because, in addition to helping you project your cash needs, an accountant can keep you focused on generating the needed cash for you to stay in business.
As the owner of a start-up, the last thing you need to be doing is spending precious time on work that can easily be delegated to others or outsourced. Hiring an accountant takes tedious financial duties like taxes, bookkeeping, budgeting, inventory, payroll, customer invoice preparation, and business counseling services off of your plate. This way, you can spend your time focusing on your principal responsibilities and other important aspects of your start-up.
Implementing the Best Accounting System for Your Business
The accounting system you choose at the beginning stages of your business can make or break your start-up. When you hire an accountant, they can give you advice on the most effective accounting system based on your business requirements. They can also help you avoid the impacts of making costly financial mistakes.
Building a profitable, successful, and sustainable start-up requires discipline, vision, consistent follow-through, and making the right investments. One such investment is hiring an accountant to help out with not only the financial aspects but the day-to-day operations of your business. Utilizing their services will enable you to place more focus on the expansion and growth of your start-up.