Deciding when to hire an accountant can be a daunting and time-consuming task for any business owner. The internet is full of horror stories about poor financial reporting, while dramatic anecdotes from connections can cause panic for small business owners in particular.

In truth, a good accountant can help at every single stage as a business grows. From sole traders looking to turn a side hustle into a full-time career through to large corporations facing complex tax laws, everybody can benefit from hiring an accountant to look after their financial affairs.

DO SOLE TRADERS NEED TO HIRE AN ACCOUNTANT?

It can be tempting for sole traders to monitor their own financial situation, attempting to save additional overheads when margins are tight. However, hiring an accountant can save you money and free up time in which to grow your business interests. Moreover, partnering with a good accountant can help protect your legal positioning, guarding against common mistakes that have avoidable consequences.

The rise of ecommerce and digital enterprise has transformed the global jobs market. Innovative projects have overtaken traditional career paths, opening a world of opportunity for small businesses and sole traders. The side hustle phenomenon has created new demand for small business accounting, and more people have malleable job statuses that blend full-time employment with elements of self-employment.

Accordingly, if your side hustle has potential to generate revenue, or if it already has, seeking the support of a good accountant will be beneficial. Filing tax returns can be worrying for those who have never done so before, but we provide accounting software and structured support that takes the stress out of managing your financial records.

HOW CAN ACCOUNTANTS HELP WITH BUSINESS PLANS?

No matter how big or small your venture, creating a business plan can be crucial in unleashing its potential. Growth and expansion are typically tethered to an overarching strategy or direction. A business plan contains all of those elements, acting as a concise roadmap for short, medium and long-term operations.

By enlisting the support of an accountant, you can add extra substance to your business plan. Accounting software can assist in more than just statutory accounts; it can inform projections and forecasts that imbue a business plan with greater accuracy and reliability. In turn, that makes the plan more valuable, allowing stakeholders to see the objective context of major goals.

ACCOUNTANTS’ ADVICE ON THE LEGAL STRUCTURE OF YOUR COMPANY

Not all companies are structured in the same way. Depending on the size, scope, industry and ownership mix, one legal structure may be more efficient than another. For example, sole traders differ from limited companies, just as a partnerships are not the same as limited liability partnerships. Similarly, non-profit organisations can adopt varying legal structures, and deciding the best fit for your project can be challenging.

Each legal structure must adhere to subtlety different rules with regard to financial reporting and tax management. By the same token, each legal structure offers attendant benefits when used correctly with support from a qualified accountant. We take a personable approach to defining legal structures, investing time and effort to understand your industry and business goals. From there, we are able to identify the most efficient legal structure for any project, helping to save you money and avoid hidden pitfalls.

WHY EVERY SMALL BUSINESS SHOULD HIRE AN ACCOUNTANT

As enterprises grow, the number of moving parts can become confusing. Keeping track of expenses can be difficult, while monitoring who owes you money is also important. The company financial records can quickly mushroom out of control if treated like an afterthought. Solving problems after the fact is not always easy, and deciding when to hire an accountant can be crucial in driving efficiencies.

A good accountant will provide valuable information, affording you a concise overview of performance. Analytical tools can help illustrate the areas of expenditure within a small business, just as they can highlight the products and services that are generating profits. This provides peace of mind to small business owners, allowing them to focus on growth rather than administrative minutiae.

IS IT WORTH HIRING AN ACCOUNTANT?

While the time-saving benefits of hiring an accountant are obvious, some people debate the financial viability of such an appointment. For sole traders and small business in particular, the thought of adding another overhead to operations can be worrying. When margins are tight, all but essential expenses are typically cut.

However, having the support of an experienced accountant is essential if you want to navigate potential problems and streamline your business. We need to stop viewing accountants as a luxury item, because the value they bring is often fundamental to growth.

Here at The Financial Management Centre, we provide flexible arrangements that make it easier for businesses to access our services. Rather than providing rigid hourly rates or ominous flat-fee retainers, we are able to tailor packages to your business and industry. What works for one company may not work for another, and we recognise that trend.

When the aforementioned risks and frustration points are removed, as with our approach, deciding when to hire an accountant is actually very straightforward. The value is self-evident, and the downside is almost non-existent.

How can The Financial Management centre help your business?

With a prolific track record, The Financial Management Centre provides a wealth of accounting and tax help services. From bookkeeping and VAT support to wider accountancy and reporting, our experienced team has gained a formidable reputation in the industry. We also help clients manage payroll, formulate business plans and calculate projections.

Our expertise in year-end accounts and tax returns is recognised by a broad base of customers, while the credit control guidance we provide is also very popular. The Financial Management Centre can also help with auto-enrolment schemes and pension setup, ensuring regulatory compliance at every turn.

If you are keen to learn more about deciding when to hire an accountant, contact our qualified advisers for confidential advice. Call 0800 470 4820 to speak with a member of our team, or drop us an email and we will respond with the information you require.

You did not launch your own business to be bogged down with admin and accountancy. The Financial Management Centre is here to take care of those needs, taking the stress away and letting you concentrate on the fun stuff.