There’s no doubt that accounting is a vital role in every business, but not all understand how they can move their careers forward beyond tax handling and bookkeeping. That’s why many start-ups and small businesses wear many hats in an attempt to cut back costs, but hiring an accountant is a worthwhile investment that can guide you throughout the life-cycle of your venture.
Of course, not all businesses require an accountant. But at the end of the line, an accountant will always be a welcome addition to your team, particularly in the cases below:
1. You should Hire an Accountant to Help Set Up your Corporate Structure
Before you can move forward with trading, it’s crucial to choose the right corporate structure that fits the nature of your business. An accountant can help define the complexities in your legal structure, allowing you to have more financial flexibility.
Your choice also impacts how you pay taxes, so making the right choice is crucial since it will shape your company’s tax implications down the road.
More importantly, an accountant ensures the company will not risk your personal assets in case your business is in a financial bind. So long as you are operating as a limited company, your liabilities will only be limited to your business.
2. You should Hire an Accountant to Manage Statutory Accounts and Tax Returns
Managing a different set of accounts and their associated tax return can be a daunting task, one that is best handled by professional accountants. Tackling these matters yourself can run the risk of straying from your compliance requirements, which can lead to costly consequences.
An accountant can take the drudgery out of the process by accurately identifying tax-deductible expenses, ensuring you don’t have to waste money on paying for fines.
3. You should Hire an Accountant to Forecast the Company’s Cash Flow
The cash flow acts as the lifeline of every business, so determining an estimate of your organization’s future financial position is critical when shaping your business planning strategy. Every decision must refer to a cash flow forecast since it anticipates your payments and receivables, allowing you to see where your company is headed.
The Bottom Line: The Importance of Having a Small Business Accountant Handle Your Company’s Financial Details
There’s a lot an accountant can do to push your business forward. Many businesses fail due to optimistic assumptions, but an accountant ensures your business plans align with your financial capabilities and current market conditions.
There are times when an accountant is unnecessary, such as sole traders who only deal with limited transactions. But for limited companies and beyond, hiring an accountant is a must as they can define your legal structure beyond managing the day-to-day recording keeping.
Why Choose Us?
If you’re looking for a reliable and affordable accountant in Australia, we’re your best option. We offer various services that can improve the profitability rate of your business venture, so get in touch with us today for a free consultation!