If you’re a small-business owner, you’re likely to thrive in a self-sufficient setting; However, the more hats you put on more, the less you’ll accomplish effectively. Accountants In Ealing is among the most crucial areas to make sure your business is profitable. If you are starting and your business grows, it is important to understand that software can get you only so far. Accounting professionals can assist your company to grow. Here are the reasons your company requires an accountant at all phases of expansion.
Your business is currently in the initial phase. There are a lot of things to consider when you’re starting:
- Business structure
- Business plan
- Bank accounts
- Regulations of the government
You may think it’s too early to employ the services of an accountant. However, how you structure your business could have a significant influence on the outcome of your business.
Your company has employees
At the beginning of your years of business, it is possible that you don’t feel that you can handle the work of an accountant. However, the reality is that Accountants In London can help your money make a profit for you, even if there isn’t a massive workforce. The accountant can:
- Make sure that your employees and independent contractors are properly classified
- Control payroll and payments
Your business structure requires audits
Many small-scale businesses are not legally required to carry out audits, and however, unless you speak with an accountant, you may not be aware until it’s late. Businesses that are owned by public entities must comply with SOX. In preparing the first public offerings, Sarbanes-Oxley Act (SOX) and private companies may have to follow specific SOX requirements.
Your lender asks for an accounting statement
The Small Business Administration reports that small-sized businesses borrowed more than $6 billion in the last fiscal year. At some point, your business may require additional financing regardless of whether it’s to fund expansion or new equipment, buying property, or even setting up your own emergency savings account. Before approaching any bank, having an accountant create an accounting statement will increase your chances of approval.
Your budget isn’t enough
Based on the Bureau of Labour Statistics, approximately 50% of businesses will fail within the first five years of their opening. Many reasons can cause failure. Failing to meet your budget’s goals will reduce the likelihood of your company’s survival. An accountant available to review your budget, aid in making adjustments and spot mistakes will assist you in making sure that your budget is on the right track to be successful.
Questions you should ask yourself prior to deciding to hire an accountant
- Does your business strategy align with your budget?
- Have you read through the tax code?
- Do you have the time to handle all accounting tasks for yourself?
- Are you certain that your employees are properly classified?
- Are you aware of the thing’s auditors are looking for when doing an audit?
- What do you think you need to be included in the financial statement?
- Are your budgets working for you?
- If you replied “no” to any of these questions, you could gain from the services of an accountant.
How to locate an accountant?
It is possible to do a simple Google search, but how do you tell if an accountant is certified? There is a myriad of databases that contain accountants. However, to ensure your accountant selected has the expertise and knowledge you require, search for an accredited public accountant (CPA). They have passed the rigorous CPA test and are licensed by the state where they are employed.