Should I Hire an Accountant?August 8, 2017
When to Hire an Accountant
If you’re running your own business, there are many occasions in which the aid of a professional accountant can make your life easier.
Without the necessary understanding of business finance and legislation, it is common for business owners to get bogged down and confused by their financial figures. For this reason, hiring an accountant can be a valuable addition to a business of any size, allowing you to put the organisation of finances into qualified, dedicated hands and freeing you up for focusing on where your strengths lie in the running of your business.
Accountants can be a great help to businesses at many different stages and times, on a long-term or short-term basis. Here are some examples of when hiring an accountant can be beneficial to your business.
When starting out with a new business idea, you will want to be able to make the most compelling case to get investors, loans, mentors, partners or staff on board. One of the best ways to do this is to have a comprehensive, professional and realistic business plan.
A key part of your plan – especially for investors and bank loans – is the financial projections. To ensure these are well thought through and reasonable, you should involve an accountant who can help make solid projections and bring a wealth of useful financial and business knowledge to the table.
Another important part of setting up a company is establishing its legal structure. This is something that many startups have no experience with nor understand. Accountants can work with you and advise what structure will best suit your business and future plans.
Keeping finances in order
If at any stage of your business’ progression you feel you are getting overwhelmed and losing track of all the financial aspects, it is time to get an accountant. It is very important you keep track of your finances to ensure, amongst other things, you:
- Pay employees correctly
- Pay the right amount of tax
- Work out how much to reinvest into your business
- Receive accurate payments from customers
Poorly managed finances can result in losing money and custom and receiving financial legal penalties.
It is understandable that you want to manage your business yourself – after all, it’s your brainchild and something you’ve invested a lot into. However, delegating tasks to those best suited is a sign of good leadership and can reduce your workload.
Hiring an accountant to manage and organise your finances – such as payroll, bookkeeping and tax returns – is a sound decision for many businesses.
When filling in tax returns, getting audited or dealing with HMRC for another reason, many people and businesses find the guidance of an accountant invaluable.
The fact of the matter is many people find the system complicated and are eager not to make mistakes which could be met with financial penalties. A good accountant will be able to help you with any issues related to taxation – for example, ensuring your employees are in the right tax codes and that you pay tax on time and exactly the right amount.
Note that if you pay your tax through the PAYE system, you do not need to fill in tax returns and, therefore, it’s unlikely you will need an accountant’s help.
Buying or selling a business
You should always enlist the financial expertise of an accountant before buying or selling a company. Details that the average businessman or woman would miss will be uncovered by your accountant, ensuring you know exactly what you’re signing up for.
When buying a business, your accountant will comprehensively look through the company’s accounts to make sure everything is in order and adds up. Along with a lawyer, they will also lay out exactly what you’re getting with the purchase – for example, which assets are included.
When selling a business, your accountant can help you get all the necessary paperwork in order and create statements which you can present to prospective buyers. They can also liaise with your buyer’s accountant to iron out details and make sure the process goes as smoothly as possible. They can also ensure the sale structure is as favourable and tax efficient for you as possible.
As you can see, there are many instances in which the services of professional accountants and business advisors – such as those at Murray & Lamb – can be exceedingly useful to a business owner. Murray & Lamb’s highly qualified and committed team are the leading chartered accountants in the North East, meaning you can trust us to provide you with smart and comprehensive financial solutions. For accounting services including bookkeeping, self-assessments and start-up aid, let the experts at Murray & Lamb help. Get in touch today for more information.