The Value That an Accountant Can Bring to Your Business

If you’ve recently set up your business or are thinking of starting a new venture, you might be thinking of all the ways you can cut costs to keep expenses to a minimum. Here, you may even be considering taking on multiple roles, including that of an accountant. However, that may prove counterproductive in the short and long run, especially if you do not understand the accounting system and practices. 

An accountant does so much more than just make entries in a book. If you are still on the fence on whether you should hire an accountant or not, below are just a few benefits of hiring an accountant for your small business.

Can Help Set Up Your Business

During the initial setup phase, you will have to make many significant decisions, including determining your business structure. Your business structure plays an essential role as it directly determines the legalities of your business, tax requirements and more. 

An accountant is equipped with the knowledge and expertise required to guide you on which business structure may be ideal for your business, given the business type and your current and predicted financial situation. 

Conduct a Financial Analysis for Your Business

Figuring out how to efficiently manage finances is perhaps one of the most challenging parts of setting up a business. Small business owners usually start by investing their life savings or through borrowed funding, so they have little to no margin for error or failure. 

An accountant can help eliminate or reduce the financial risks by assessing your financial situation and creating a well-thought-out and efficient budget for your business. Where you may forget to take into account the need for emergency cash reserves, an accountant will not as they understand the importance of careful financial planning. 

Set a Budget for Your Business

As a new business owner, you may find yourself unable to manage your expenses for every expense that seems important, but not all of them actually are. Your accountant can help keep expenditure in check by devising a budget for you. With a limit to how much you can spend in a week or per day, you will learn how to prioritize your expenses and be able to manage your finances better.

Manage Business Cash Flow

Another important aspect of efficient business management is cash flow management. Usually, business owners are unable to keep track of payments and receivables and may end up overestimating the amount of money coming in and end up overspending, which can cause a business to run out of funds very quickly.  

An accountant will not only be able to track cash flow but also update your budget, set financial goals and benchmarks.

Handle the Tax Filing Process

Accountants will ensure they maintain proper financial records, detailed accounting books and receipts properly logged in to efficient accounting software as per the requirements of your business. They can also advise you on how much taxes you need to pay during the year to make the tax filing process easier. 

Another major benefit of hiring an accountant is that you will have all your financial records in order, so the tax filing process will be a piece of cake. Not that you will have to handle it anyway, as that too falls under the accountant’s job description.  

Make Data Backed Financial Decisions

If you want results, you will have to make data-driven business decisions, especially when making major financial decisions. If you want to purchase inventory in bulk, your accountant will be able to guide you on whether that is financially feasible or not. 

If you want to scale operations, you will have to consult your accountant to get insight into the current financial situation and company savings to help determine the best way forward. In case you find that you may need to acquire funding from external sources, your accountant will help devise a financial proposal plan and reach out to potential funding sources as well. 

Reduce Your Workload 

Lastly, but most importantly, hiring an accountant means less work for you. It allows you to focus on business operations and management and leaves the tedious tasks of maintaining daily financial records to the professionals. 

Accounto – Providing Client-Based Accountancy Solutions

Accounto is a Dublin-based accountancy firm. Here, you will find accounting experts with a passion for numbers and the goal to add value to their clients. If you are still unsure about the benefits of hiring an accountant for your small business, reach out to us to learn more about why hiring an accountant is an essential step for your business.