When should you hire an accountant?
Posted on 27th July 2022
As with any business, accurate and up to date accounts are an important part of good business management. But when is the best time to hire an accountant? At what stage of running a business does it make sense for you to hire an accountant?
There are many challenges for growing a business
From the very first moment of conceiving an idea for a new business through to selling, leaving, or winding a business down, an accountant can help you at every stage of running or growing a company.
Even before you’ve officially started a new business, an accountant can help you to formulate a business plan, help you with the formation of a new company, with loan applications, filing tax submissions, tax investigations, and of course, managing the accounts for your business.
Can I afford an accountant?
Many new business owners question whether they can afford to pay an accountant to do work that they perhaps could do themselves. Even well-established businesses sometimes wonder if it would save money and keep costs down by doing their own accounts, instead of hiring an accountant to do the work for them.
Is this a cost-effective solution? Let’s break it down.
How long does it take you to perform a particular accountancy-related task such as compiling and filing your taxes? Is that really the best use of your time, or would it be better to outsource, allowing you to focus more on areas of your business where you’re the specialist?
Let’s assume it takes you 15 hours to complete your taxes. Let’s also assume that you would normally charge £100 an hour for your professional services. That means, in terms of labour, it would cost you £1,500 to complete your taxes, but would you be able to sit down and get them done over consecutive hours? Or would you, like most business owners, need to multitask; going back and forth between your taxes and other business tasks that require your attention? If, in all likelihood, it’s the latter then there is always the possibility of errors being made. Not only that, but it takes attention away from the day-to-day running of your business, which usually means a drop in productivity.
An accountant would be able to complete your taxes for you, likely charging a lower hourly rate than what your time is worth in real terms. They would inevitably take less time to do it too, again saving you money, and also freeing up your time to focus on making money. Tasking an accountant with your taxes also reduces the chance of errors in your tax submission too; this is an accountant’s area of expertise, after all.
Accountancy advice, advice for business plans, advice for company legal structure, accounts submitted, tax returns, VAT returns, full account management, payroll, preparation of financial statements, corporation tax, Corporate Gains Tax… the list goes on.
With professional accountancy service packages, you get a hell of a lot of bang for your buck.
When you have an accountant on a retainer for your business, you get dependable advice and services when you need them most, often provided at great value for money, regardless of which stage your business is at.
When writing your business plan, using an accountant can help add financial gravitas to your plan, keeping it realistic and more likely to succeed, saving time and money further down the line.
An accountant can help you decide on the legal structure of your company; trading as a limited company, a sole trader, or even a corporation might fit you, your circumstances, and your business plan differently as each carries different tax rules and liabilities. An accountant will be able to outline the benefits and pitfalls of each, and even advise you on which one would best suit you.
Even when your business is in full swing, bringing in a profit, and running smoothly, financial and accountancy-related advice can be indispensable. The financial side of running a business can easily get confusing and become overwhelming at times. It can be easy to lose track of your cashflow, creditors, debtors, and assets. An accountant can help manage this and keep your accounts on track, so you know exactly what shape your business at any time.
An accountant can also help you to measure your business’ key financial metrics, such as employee salaries against total revenue so you know how your business is performing, even down to individual employees, helping you keep a more accurate track of your cash flow.
An accountant can be incredibly helpful in a huge range of circumstances; when you have employees working for you, when your business starts to grow at any point, when you need to deal with government compliance paperwork, tax law updates, statutory accounts, updating your company’s status on the government register, when business partners join or leave the company, handling payroll, employee tax codes, if you’re ever audited, when applying for a business loan or overdraft, when you’re considering purchasing another business, when you’re thinking of winding down or selling your business, and much more.
An accountant will be there for you at every stage of your business.
No matter what stage you and your business are at, having an accountant by your side can be a tremendously useful resource, helping you keep your business on track and freeing up your time to focus on what you’re good at.
Ask Abaqus about our accountancy packages.
Starting from just £395 for our sole trader package and £1,295 for limited companies, our accountancy services provide a wealth of knowledge and experience for you to draw on, helping your business to grow and succeed.
Get in touch.
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