Starting a business can sound easy on paper but it can be a lot more challenging. If you want to make your startup a success story your business needs more than a unique business idea. Statistically speaking every year around 305 million startups are created. However, only half of them make it through the first year. No one can predict whether a start-up will become successful or not. But taking simple steps in the right direction will help your start-up in becoming a success.
Although most of the business owners are focused on getting the business up and running they forget about the financial aspects of the business. Every business owner wants their business to be profitable but the problem is that they forget the importance of accountancy and financial management in growing their business. Entrepreneurs must understand the financial aspects of the business from day one because the financial management of your business may have an impact on everyone you are involved in business with. The businesses that don’t understand the fundamentals of finance will go down fast in case of an economic downturn. If you are someone who thinks that your business is not yet at a place where you need professional accountancy guidance then you are wrong. Having professional guidance will lead your business in the right direction.
Not that you have established that startups need to focus on their accountancy and financial management you must be thinking about whether you should be hiring an in-house accountant or outsource your accounting. Hiring an accountant in-house can also be the right move as they will take care of all the accounting-related needs. However, you need to find someone who is experienced and can handle all the accounts and finance-related issues with respect to your business.
Startups are on a tight budget and to get an experienced accounting professional on board you need to spend a lot of money. In case you hire a fresher you must spend a good amount of time and money on training. You can avoid all this time-consuming activity by outsourcing your accounting services. There are many accounting and business advisory firms that will help you in managing the costs and improving business profits. AccountingPreneur is one such accounting, business, and tax advisory firm that identifies issues and helps businesses in tackling them along with legally saving taxes and managing costs. Check out www.accountingpreneur.com to know more about their accountancy services.
Does your business really need an accountant?
Outsourcing the accountancy services at the initial stage of your start-up will be the right move. If you are still in a dilemma about whether you should hire an accountant for your startup then here are a few reasons why you should.
Following are key reasons why you should have an accountant associated with your start-up.
Guides you through your business journey
The most important thing a business, especially a startup need is guidance. Having guidance in the initial stages helps them in making decisions that will be profitable for them in the future. You cannot drive your business towards success if you don’t have any business goals. Well, if you are not from a finance background you may not know how long it can take to reach your goals, and also there are chances that your estimation can go wrong. However, if you have an accountant with knowledge, expertise, and experience by your side. They will show how your decisions will have an impact on your business in numbers. Seeing the number projections will always help you in choosing between two decisions. From the business plan to budget they will provide you with advice on everything and anything. Each of the projects that you take up will cement the growth of your business so guidance from an accountant will help you in growing your business.
Handle other aspects of your business
People who have limited knowledge about the finance or accounting aspects of the business think they can easily manage themselves without an accountant. Well, they can manage but only to a certain extent. First of all, they are not aware of all the nit and grit of accounting. Also, remember that accounting is more than just booking keeping. In the initial days of your business, you should devote all your time to developing your business, it is the right time to form connections build networks, and most importantly all the time you spend in managing your accounts could be used in doing something that you have expertise in. Don’t sacrifice your precious time in accounting as there are people who do an excellent job at it so that you can concentrate your time on doing things that you are passionate about.
Keeps you legally compliant
As you are starting a business newly there are so many things that need to be taken care of properly such as registration of your company, payroll management, tax returns, bookkeeping, etc. They always keep you up to date with filing your returns or any other government legislation. They will provide you with all the answers to questions that you have about things such as when you should be filing your company returns, personal returns, or is VAT applicable, if yes then should you charge it? Non-compliance with government legislation can end you up with huge penalties, so it is better to let the experts handle it for you, don’t you agree?
If you are a business owner hesitating and thinking that you will bring in a financial advisor at the right time into your business then you are wrong. There is no right time, having a financial advisor by your side from the beginning will get you through the regulatory and compliance requirements easily. If you handle the finances all by yourself sooner or later you will feel overwhelmed and won’t have much time to focus on your passion. An accounting service handles your finances along with providing you with insights on how to grow your business.