When small businesses should hire an accounting firm
Running a business often means making tough decisions. Sometimes, you might be tempted to try do it all yourself. This is where delegation, and realising its importance, becomes critical. Just as you are an expert in what you do, so are accountants.
As your business grows, things are bound to get more complex. Having people with the relevant expertise on your side will become essential. Accountants can do much more than just your finances; they are there to help you at every stage, and in a myriad circumstances.
Here are some common situations small businesses face, where it would make sense to hire an accounting firm:
At the very beginning, you’ll need help with a business plan and deciding on your company’s legal structure
Hiring professionals at this early stage will mean you get to benefit from their financial knowledge right from the start. An accountant will be able to help you create a more realistic business plan, as well as add financial projections.
An accounting expert can explain the legal business structures or entities available to you, and help you choose one that’ll be the right fit. From sole proprietors to limited companies, limited liability partnerships to corporations - different structures will be right for different businesses. This is determined by a number of factors, and it’s not always easy to understand how the type of entity you use to run your business affects you, as an individual and as a business person.
When you’re applying for a business loan
Banks will be very reluctant to lend you money, unless they’re sure they are going to get it back. Having an accountant prepare your loan application can greatly improve your chances. Since 2008, securing a loan for a small business has become harder in most countries. This makes it all the more important that you have a sound business case when you make your application. An accountant can use their expert, extensive knowledge of your financial data to present facts and figures that back up your application for funding. They’ll also be able to answer any questions your bank might have about revenue projections and expenses.
When you want to save time and money
Think about how much time it would take you to: keep accurate record of all your financials, complete your tax forms, mange your payroll, and keep track of your cash flow. This, on top of the day to day running of your business? Considering the old adage ‘time is money’, why waste both when you could be delegating? Not only will experts look after all accounting activities, they can provide insight, through financial analysis, on how you can grow your business.
When you have to deal with the government
Dealing with SARS can be scary and stressful. There are so many complicated laws and regulations that must be followed, even though they can be incredibly difficult to understand. Accountants have all the up-to-date tax law knowledge necessary for businesses. They are experts in these situations and can ensure you satisfy any and all government requirements, in a way that is ultimately beneficial for your business. The last thing a business owner wants is taxation troubles; it makes sense to have experts working for you.
When you’re ready to let technology work for you
Small businesses are currently facing a substantial shift in technology, which they must adopt into their business processes to effectively compete in the marketplace. To best serve their clients, accounting professionals need to be on top of new technologies and understand the best way to incorporate those technologies into the small business process. This will allow their clients to benefit from what business and accounting technology and software has to offer. From quick statements and reports, easy access of financial information, to inventory management and financial analysis; why not get the most out of what new technology has to offer? When you have accounting professionals who understand how this technology is woven into the industry, the value added to your business will be undoubtable.
Some of the most successful business owners in the world are experts at delegating work to the right people – so try to learn from them. At Colenbrander Inc, we don’t just crunch numbers, we offer a wide range of financial services and provide worthwhile and essential business advice, every step of the way. Colenbrander’s chartered and professional accountants are ready to help you navigate the best path for your business, so you can focus on running it.