It’s a familiar situation for any new business owner. Your business is growing, and with that comes excitement, ambition and a hell of a lot of questions. One of the most common ones that budding entrepreneurs ask us is: “Do I need an accountant for my small business?”.
It’s totally understandable. On the one hand you want to ensure that you don’t trip over any roadblocks or unknowingly wander past the endless metaphorical red tape that surrounds business management. On the other hand, handing any form of control of your youthful pup of a business to another professional may also feel like a daunting prospect.
But rather than looking at it like dropping off at doggy daycare, think of it as more like puppy training classes. Helping you make sure that your startup is a suitable fit for facing the world, rather than seizing control entirely.
As for when the right time is to do this, it varies from business to business. We know that seems a bit of a cop out. However, in this blog we will look to help clarify exactly when this moment may be for your business.
How Can An Accountant Help Your Small Business?
This may seem a touch sanctimonious coming from an accounting agency, but believe it or not, accountants do far more than just handle numbers.
Here to do more than just count beans – as the old cliché goes (see image below for reference) – accountants can provide valuable insight into how you can help grow as a business and plan for what lies ahead. If we revert to our canine metaphor, think of it as rather than the simple ‘sit’ and ‘stay’, accountants can teach your business to fetch the mail or protect against intruders. Metaphorically speaking of course…
Extra preparation now means less chance of hassle – unwanted government letters/hidden fees/a foul mess on the kitchen floor – later on.
In terms of examples, here are just a few things that accountants can do for your business:
Creating a business plan
The essential roadmap for ensuring that your business doesn’t stray off track. Accountant’s insight into the inner workings of the business can help you build the perfect business plan. If you are at the wheel of the business, think of us as the mechanics taking a look under the hood.
Setting up and running accounting software
Everything is digitised these days. That includes running your company’s finances. Platforms like Xero help you keep on top of your finances in real time. Making sure that it is set up properly is a job for an accounting expert.
Help you focus on your business
With someone taking over the accounting side of your business, you have extra time to focus on what you really want to do – the passion that got your business into this position in the first place. That’s one of the main reasons that we love working as accountants for creatives, as we give professionals a platform on which to follow their dream.
(For the record, we are well aware that there are far more than five beans in that jar, as indicated by this chap)
Can I Do My Own Accounting?
Still unsure about whether you really need an accountant? Fair enough. There are definitely scenarios in which handling your own accounting is a viable option.
If you are a freelancer looking to support your lifestyle, keeping tabs on your finances is definitely an option. However, if you are looking for your freelancing to grow into a fully-fledged business, hiring an accountant for startups is a smart means of helping make this happen.
There are cases of individuals experiencing business success while handling the accounting themselves. However, they are not only few and far between but also thanks to prior experience in business ownership.
If you do decide to take the helm yourself, it may be smart to solicit the help of an accountant during the initial stages to ensure all is as it should be. This includes ensuring that your software is both up to date and set up correctly.
If you want to find out more about taking care of your finances, then you can read our beginner’s guide on how to do bookkeeping .
Don’t know the difference between bookkeeping and accounting? No worries just read our blog.
When Should You Get Help From An Accountant?
The simple answer is the earlier the better. Once you have established that you want to grow your business into an industry juggernaut, getting the help of an accountant should be one of the first things on your agenda.
But if you are already past that stage, fear not. In reality, an accountant can help your business regardless of what stage it is at in its development. From startups to SMEs to global conglomerates – although fair play if you have made it that far without one!
If you are thinking of hiring an accountant for your business or are still contemplating ‘Do I need an accountant for my small business?’, get in touch with our team of accounting enthusiasts or call us on 0203 617 9176 and learn how we can help your business take the next step on its development journey.
