Starting a business – why your start-up needs an accountant

When you are first setting up your business, it may be tempting to cut costs by taking on all the responsibilities. However, cutting costs can also lead to cutting corners.

Having an accountant on hand offers more than just someone to manage your taxes.

By having an expert on board to plan and monitor your finances, your start-up’s chance of success increases dramatically.

Expert advice

No matter how much research you have conducted before starting your business, there will always be holes in your planning.

An accountant can offer a critical eye to identify any pitfalls in your business plans.

You will also receive guidance on investment and growth decisions, such as where you can source funding and resource management.

Budgeting

Whilst it may sound simple, budgeting for your start-up takes careful consideration.

You must consider all your expenses. Depending on your business, these could include:

·        Employing staff

·        Marketing

·        Materials

·        Purchasing or upgrading equipment

·        Rent and utilities

An accountant can help you identify which expenses are essential, and allocate a weekly, monthly, or quarterly budget.

Budgets can be difficult to stick to, particularly if you have set your own. However, when you have the aid of an accountant, you can rely on them to keep track of your business accounts and identify areas in which you could be reducing spending.

Saving you time

Time is precious, especially if you run a business.

Tasks such as managing your accounts, following your tax obligations, and managing your bookkeeping can be longwinded, time-consuming, and tedious.

Outsourcing these tasks to an accountant can buy you valuable time to invest back into your business.

Moreover, your accountant can ensure that everything is done correctly from the beginning, so you don’t have to waste time changing how you run your business.

Improved cash flow management

Cash flow management is a top priority for many business owners.

Even if your business is successful overall, with poor cash flow management you could find yourself in a financial predicament.

An accountant can analyse your business to help predict patterns of increased expenses and decreased profits. With this data, they will be able to ensure that your business always has enough money to cover all its expenses.

Ensured compliance

Being compliant is a vital aspect of a successful business.

Staying on top of your tax obligations, payroll, and expenses can be tough.

An accountant can help manage these for you. From keeping your accounts and financial data updated to staying on top of deadlines, your accountant can ensure that your business has nothing to worry about.

Hiring an accountant

It is best to get in contact with an accountant as soon as you set out on your business venture.

However, an accountant can come on board at any point in your start-up journey to provide advice and help with compliance.

If you would like to find out how an accountant can help your start-up, please get in touch with the team at Iceberg Accounting.