Accountants are the people who handle financial issues of individuals and businesses, operating in all sectors. Whether you are into an art business or you operate your business from home an accountant can do a lot than just playing with numbers. Starting from just a business plan to its formation and loan application to government audit an accountant has the ability to make every financial issue simple for you at every step.
At a very initial stage of your business when there won’t be a lot of money changing hands, you can simply postpone the idea of having an accountant. But when your business gets a proper formation, you certainly need to take control of your finances. Here comes the role of an accountant. If you have a small or medium sized business and are still not aware of the advantages of a professional accountant you are definitely missing out. Here are five signs that indicate you are in need of a professional accountant.
1. Starting a new business
Stepping into the world of business is definitely exciting but every business plan comes with financial risks. Before involving yourself into it you need to know whether your idea is profitable or not. In such situations only an accountant can help you out in taking the right decision by clearing your finance related doubts. They will also give valuable insight on your financial options and suggest you the right lenders.
2. Tax time causing you tension and stress
When the tax period starts giving you stress, it is high time for you to hire a professional accountant for small business owners it becomes really difficult to prepare Business activity statement and keep up with the quarterly GST reporting. An accountant can suggest you ways to maximize your deductions on time for the end of the financial year. He or she can also keep you updated about the alteration and changes made in the rules and regulations.
3. You find it difficult to handle finances
You may find yourself in a situation where you do not know why your expenses are shooting through the roof? Or your sales have visibly increased but profitability has not changed. This is the time when your business needs an accountant’s interference. An accountant scrutinizes your financial reports, measure key metrics, and points out areas where you can make changes to reduce costs. They can also keep their eyes on your debt structure and give you ideas on when to pay back what’s owed and when to reinvest.
4. Your business is growing
The ultimate aim of every business is its growth but handling it properly can be challenging sometimes. If you hire an accountant at this stage, he or she will help you out with sound financial advice for the growth strategy of your business and manage the financial and administrative pressures that come with hiring more employees, serving more consumers and adding new outlets.
5. You think you are paying a hefty amount of tax
If you are clueless about your high tax bills, seek help from a professional accountant who can enlighten you in this issue. A responsible accountant will get to the root of the problem and find out why your tax bills are so high. They will also show you the way to make tax savings in other areas such as when to pre-pay expenses and write off obsolete inventory or bad debt.
It is really a good decision to hand over the responsibility of handling your company’s financial affairs to a qualified accountant. Choosing the right accountant is crucial here. You should give this major responsibility to a person who is more experienced than you are in this field.