Accountants have a role to play in every stage of a company’s growth. From the creation of a business plan to a tax audit, the services of an accountant are invaluable. For small businesses, the decision to hire or not hire an accountant is an important one as these small operations often work at a limited budget.
So does your small business need an accountant? In this article, we identify the moments in your business where an accountant can help.
You Need an Accountant in Writing a Business Plan
Financial projections are an essential part of any business plan, and you may require the help of an accountant if you want this section to be realistic and professional. It is also worth noting that some investors skip to this section, so you would want to keep this section as accurate as possible.
You Need an Accountant for Legal Structure Advice
Not all companies are corporations. Some take the form of other legal structures for various reasons, taxation being one of the primary ones. A company can take the structure of a limited company, limited liability partnership, or sole proprietor. Each of these legal structures has its advantages and disadvantages. For example, a limited liability company limits the business’s liability to the assets owned by the business; not by the owner. If you are unsure of what type of structure you want your business to take, it is best to seek the help of an accountant.
You Need an Accountant to Help With The Finances
Small business accounting does not usually equate to simplicity. It can quickly become complex. If you’re struggling to track various business metrics and manage your payroll, an accountant can help you make sense of all the numbers.
You Need an Accountant If You Have to Deal With The Government
Small businesses are not exempt from doing some government paperwork. Throughout your business lifecycle, you will be required to complete legal and compliance documents, update your business’s status in government registers, and prepare tax documents–all of which can be daunting for small business owners. A reliable accountant will not only help you with your tax returns but also with accomplishing various government requirements for your business.
You Need an Accountant In Case You’re Audited
It’s unlikely for small businesses to be audited, but if it does happen, you would need the help of an accountant. Actually, it’s better if you already have an account even before an audit happens to make sure that you don’t trigger an audit in the first place.
You Need an Accountant When You Apply For A Business Loan
Accountants can improve a small business’s chance of having its loan approved by banks. Lenders will grill you on your business’s revenue projections and expenses to see if you are capable of paying the loan back. An accountant can help you present the relevant figures that will back up your answers. Having an accountant itself shows the lender that the business is financially managed well.
You Need an Accountant When You Are Buying or Selling a Business
If you’re planning to buy an existing business, it would be advisable to consult an accountant first to see if the company’s accounts are in order. You would want to find out if that company’s assets are fully owned or leased and if it has any outstanding debt. You may also require a lawyer for this type of transaction.
If you’re selling your business, an accountant will be able to put in order your company’s financial records, so that it will look good to your prospective buyer. An accountant can also make sure that you get the most money after the purchase as this amount will vary after tax. A reliable accountant can advise you on the most tax-efficient payment method.
We Can Help
If you need professional accounting help for your small business, our experienced tax professionals can help guide you in the right direction. Contact us today at 818-452-2641 or fill out our contact form to schedule a free consultation.