How You Can Determine if you’re Small Business Needs an Accountant – and How to Choose One

By | December 8, 2020
Small Business
Small Business

Operating a business is no joke, and even if your business is small (for now), it doesn’t mean you don’t have any complex requirements. Take your finances. Ensuring you stay on top of them takes an effort, and you have to keep track of your transactions and expenses – and have a good idea of where you are heading. But while you may do well and good handling specific matters on your own, the handling of your finances may be best delegated to an expert. An accountant can make a significant difference to your business, but do you really need one? Here’s how you can determine if your small business needs an accountant – and how to choose one. 

The best way to decide 

Unless your enterprise remains small, your requirements in accounting are only bound to grow over time. These requirements can become a burden, and you may soon find that they are too much to handle on your own. Besides, if you aren’t adept at accounting or have the skills for it as an accountant does, it can cost you – not just in terms of time but also in terms of money because you may not be able to avoid costly errors. Here’s one quick way to determine if you need an accountant: if you find yourself spending over four hours each week trying to handle your financial affairs, then it may be best to hire the services of a professional.

What you can expect from one

When you have an accountant, they can help free up whatever time you have so you can engage in other pursuits that allow your business to grow. You can focus on other tasks and not worry about whether your finances are good. An accountant can provide you with peace of mind because you know that you will be less likely to face errors when it comes to your taxes, financial reports, and business compliance. Your accountant can help you save money by increasing your efficiency in your taxes and improving your business’ cash flow. They can help you source funding when necessary. In general, your accountant can provide you with support and business advice, help you assess the strength and feasibility of your ideas, and allow you to test your plans for your business.

The general services provided by an accountant 

There are certain services you can expect from your accountant, and it isn’t just bookkeeping. They can help you with your taxes, such as the accountants in central London from Griffin, Stone, Moscrop & Co, and they can also improve your efficiency on taxes. But they can also make sure that you are complying with rules and regulations and help you develop and create your business plan. Your accountant can help you manage the growth of your business, and they can provide you with a good exit planning strategy when required as well.

How to choose one

When you have a prospective accountant in mind, make sure to meet with them – either virtually or face to face – before you enlist their services. A good connection is essential. Ask them about their services and qualifications as well as experience, and it would be good if they are a member of a body, such as ICAEW, CIMA, ACCA, or ICAS.