Early business growth is important. By defining those early foundations, you set up your business and make it ready for expansion. There are some fundamental pillars that need to be in place before you upgrade from a humble startup to a small business, and having an accountant is perhaps one of defining factors that separate a simple business from one that deserves more attention. Without proper experience, it’s going to become a headache for you to manage and your lack of qualifications could ultimately spell disaster for your company.
No matter how much time you currently have, growing your business is going to be taxing and you’ll want at least a contractor accountant service to help you deal with all the financial complications that you will encounter. The reason you hire a contractor instead of an employee is that it’s more financially viable. Hiring an employee, especially as a new startup, can be tricky and expensive, so it’s best to outsource as much as possible in the beginning and slowly graduate your way up to an in-house accountant.
So without further ado, here are four simple reasons why you’re going to want an account in your startup as early as possible.
Taxes take forever to do and they’re a pain
No one likes doing taxes. Even if you have a bit of experience on how to do them and you know the legal implications around it, they take far too much time and you want to focus your efforts on actually running and growing your business, not crunching numbers and calculating things. Hire an accountant (even an outsourced one) and skip this boring, yet necessary, task.
You’re going to be busy focusing on other things
As briefly mentioned before, you’re going to want to focus your time on other aspects of your business and you never want a miscalculated budget or failed tax return to ruin your company. Your time needs to be split among all the different tasks in your business, and one of the most time-consuming ones is managing your finances. Be it paying employees, calculating a budget or projecting growth, you have to be sure that you can do them all efficiently which is why hiring an employee to do your bookkeeping can be such a boon.
It helps you attract investors in the future
Investors like accountants, even if it’s just an outsourced one. It shows the investors that you’re serious about your business and it tells them that, if needed, you can produce numbers and statistics that give them peace of mind before investing in your business. They want to see things like projections and data, and that’s more easily provided by a professional accountant than you.
Accountants make it easy for you to grow your business
Speaking of projections, wouldn’t it be a lot easier to run your business if you knew exactly how much money is coming in, going out, and how much you can expect in the future? If you want to relocate your business, hire new employees or buy a fancy new machine, then you need to know your budget and that’s what an accountant is for. If you want to have better control over your finances so that you can plan your growth strategy, then make sure you hire an accountant.
