When is the best time to hand all or some of your accounts and/or finances to an accountant? This is a question that everyone in business will ask at some stage, even if you are still in the concept and development phase of a new business.
For us, it is a question we approach from both a business and a financial position. This is an important point as many people only look at the financial question, i.e. will bringing in an accountancy company save you more money than it costs you. Of course, this is an important consideration, but the business questions are important too.
If you select an accountant with a broad range of skills and experience, you will get more than a tax and accounting service. Instead, you will get advice, honest analysis, and useful opinions that will help you take informed decisions on the current state and future path of your business.
Here are some of the main situations where an accountant will bring real financial and business value to your company.
Hire an Accountant When Writing a Business Plan
An accountant will add information to your business plan that will make it look more professional. This includes financial projections and reports. In addition, an accountant can also give you advice on the proposed business as well as giving ideas that will increase your chances for success.
Hire an Accountant When Your Finances Become Complex
Complex finances are usually a good sign in a business as they indicate a business that is growing and moving forward. To maintain that momentum, however, you need to stay on top of those finances, and that almost always means bringing in professional accountancy help.
Hire and Accountant When Preparing Tax Returns
An accountant will make sure you meet all your tax requirements while also ensuring your tax position is as optimised as possible. If you don’t have an accountant you risk the opposite – paying too much or too little tax, and potentially making mistakes that can be costly and time consuming to rectify.
Hire an Accountant When Planning or Implementing Business Change
Accountants can help in a range of business change situations. This includes relocating your business, expanding your business, or cutting costs. Your accountant will give you financial projections to help you meet your business targets. They will also help ensure you have planned for all potential outcomes of the change, particularly financial outcomes.
Hire and Accountant When Buying or Selling a Business
An accountant can help you prepare your business if you are selling it, making it is as attractive an opportunity as possible. If you are buying, they can investigate the potential business to ensure you know all the facts and have a complete understanding of the businesses current position.
Hire an Accountant Now
Finally, there is an argument that all businesses should always have an accountant. When thinking about this, consider your time. Start by working out how much an hour of your time is really worth in your business? Now work out how many hours you spend on accounting tasks.
When you multiply your value to the business by the number of hours spent doing accountancy tasks, you will start to get an idea of the real value of an accountant to your business. Keep in mind as well that an accountant is likely to bring additional benefits, i.e. provide you with reports you don’t currently have, save money on your tax bill, identify areas where costs can be reduced, and more. This all contributes value and should be considered in addition to the basic cost of accountancy fees.
To find out more about how an accountant can help your business, contact a member of the Gilroy Gannon team today.