Managing your finances as a sole proprietor or business owner can occasionally feel overwhelming, especially when you realise how complex your requirements become as your company expands.
Fortunately, you can procure the services of a business accountant in the Hills District to help you navigate your accounting requirements, providing much-needed relief that can help set your business on the path to sustainable growth.
A Business Accountant’s Role
Accountants play a vital role in helping you establish ways to manage your business finances more effectively, keeping you compliant and enabling your business to grow.
Improving cash flow management is one of the main areas where small businesses struggle most. Accountants can help by creating cash flow forecasts and ensuring your business has enough liquidity to meet its obligations.
Your taxes also don’t need to be as complicated when you have an accountant in your corner, as they can help you maximise your deductions. An accountant will ensure you pay the right amount of taxes and ensure you’re fully compliant, thereby reducing the risk of running into fines or facing legal complications.
Accountants play a key role in providing financial planning and advice, helping you make the right financial decisions to ensure the longevity and sustainability of your business.
When Should a Business Consider Getting an Accountant?
Hiring an accountant at the outset can be beneficial as they can help you choose the right kind of business structure and set up efficient bookkeeping systems right from the start so you can steer clear of potential pitfalls that could derail your business before it even gets off the ground.
Registering for the correct kinds of taxes and ensuring everything is done correctly from the outset can go a long way toward ensuring a solid financial foundation for any business. During tax season, an accountant can help you manage complex tax returns and ensure the right deductions are captured, making lodging your taxes a smoother and less stressful process.
An accountant’s expertise is also particularly beneficial during periods of expansion. As your business grows, your financial responsibilities will grow with it. Having a small business accountant on hand will help you manage this increased complexity with ease and reduce the anxiety associated with planning and forecasting during this crucial stage of your business’s evolution.
Does a Sole Trader Need an Accountant?
Like many other sole traders, you might assume you can handle your finances on your own. This might be true in the early stages when you’re still trying to establish yourself. However, as your business grows, the advantages of having an accountant become clearer as you deal with more complex financial matters.
Hiring a sole trader accountant to assist you in managing your compliance objectives can go a long way toward keeping you out of trouble and reducing your risk of penalties.
Tax efficiency is another reason why you would want to have a sole trader accountant on your side, as they can help you ensure you get the most out of valuable tax deductions.
An accountant can help you identify all the tax advantages available to you and ensure you optimise your tax situation ethically and responsibly.
How Often Should You See Your Accountant?
The size and nature of your business will determine how often you should see your accountant.
Startups generally require more frequent consultations, as it is necessary to make sure everything is set up correctly.
However, more established businesses might only require quarterly reviews. Quarterly reviews allow you to stay on top of your cash flow, review your profits and losses, and ensure you meet your tax obligations.
Annual tax preparation is also a necessity and an absolute minimum. Meeting with your accountant at least once a year will help you stay up to date with your financial planning and adjust your annual financial objectives according to your current performance and updated forecast.
Can You Start a Company Without an Accountant?
Financial setup becomes easier when you have a small business accountant on hand, as they can help ensure you are registered for the correct taxes, have the appropriate accounting software, and are prepared to make key financial decisions that can impact your business’s success.
Bookkeeping is another essential aspect of having an accountant. Although many small businesses use DIY accounting tools, keeping track of everything yourself can quickly become overwhelming as your business grows. That’s why you need a skilled accountant to help you.
Schofields Accountants is Here To Help Your Small Business
Schofields Accountants can help your business grow from the very beginning. If you are looking for a business accountant in the Hills District to help set your business up for financial success, contact us today.
