When one starts a business it is desirable that it grows as money is seen as the biggest motivator. Once things have started to snowball, the game changes to new levels. It is important that the owner of an up and coming business involves an accountant at some point or another.
It is important to discuss what constitutes as a challenge for a growing business before discussing an accountant’s involvement. There are many different stages when it comes to nurturing a business, for example, loan applications and government audits which happen on a yearly basis depending on the rules and regulations of the country where the business is located. For small business owners, it may be assumed that an accountant is a luxury only required for owners of huge industrial conglomerates. However, that may not be the case. Maybe someone who is good with numbers may be needed for just a few hours. Assuming, for an instance that a typical business owner makes $100 for every hour he is working on his business. If this business owner takes around ten hours to do his taxes, there goes $1000 plus there is the near infinite loss of opportunities missed. Opportunities where the said business owner could have met new people, set up new deals or maybe even found a chance for expansion. There is also the risk of erring since it is safe to assume that not everyone who is good at running a business has a knack for doing taxes and dealing with other financial matters.
Mentoring your business
Another good reason to get an accountant involved in the early stages is the right person may also act in the capacity of a mentor. This does not imply that the accountant may take executive decisions regarding the business. However, someone who knows what he is doing knows how to make projections and use the numbers given to him to link that with the right path to take the business on. Some accountants even use software which come up with graphs and charts which help explain the predictions or forecast of the business. This implies that running a business is not always about luck but someone who knows when to make the right moves may have a better shot at success.
Business and mercantile law is a subject taught in many universities. Chances are, if you are someone who has not been educated on the subject, you may be susceptible to making mistakes of the legal nature. An example being that a business may be filed under one of many business structures such as, limited company, limited liability company, sole traders among others. One might have some taxes offset if one were to do business as a sole proprietor and invoicing everything under their name. However, if one fails to pay suppliers or loses a lawsuit the government has the right to come after your property. So, it is necessary to have expert advice in such matters beforehand and this is again an area where an accountant may be of assistance.
Speaking of such matters, the government likes to keep a healthy interest on businesses especially when there are taxes to be collected. Business owners commonly complain that they have only so much time on their hands despite deciding their own working hours. Despite this, many are unwilling to delegate tasks to others. Even when tax returns have been filed, there may be a mountain of legal work demanding attention. With the help of a good accountant one may complete and file the relevant legal and compliance documents. Maintain a record for directors and other people involved with the administration and keep the company status updated with the right government departments among other tasks.
Cloud Accounting software
Almost all of these tasks, if not all, may become much more efficient with the help of modern accounting software based on the cloud. Two of the best cloud accounting software on the market are Xero and QuickBooks Online. Canstar Blue conducted a survey on the use of accounting software across Australia and Xero came out on top. The survey involved many small businesses and users were asked to compare ease of use and access, customer care, reporting and satisfaction in accounting functions. Quickbooks Online on the other hand is preferred in the US market. Both these accounting giants are both competing for the UK market as both the products indicate that they are best suited for small businesses.
Features include cross platform access meaning the application may be used on mobile phones, computers and tablets. The mobile app is even able to send invoices, reconcile and create expenses on the go. Xero is extremely powerful when it comes to integration as more than 600 apps may be linked to it. Employees can also be managed and salaries may be sent to them from your mobile or from home through a laptop.
So, with a good accountant and with the help of a powerful software like Xero or QBO it is possible to run a business and make it snowball into something bigger and potentially go head to head with the giants present in the market.