While accountants are not always seen as a ‘must have’ for start up businesses, there is a lot of things that start-ups need an accountant for. In this blog post we have put together just some of the reasons that your start up needs an accountant.
You’ll Be Busy
As the owner of start up business you will be really, really busy. In the early days it is likely you will be the only person within the business which means you are the owner, the marketer, the admin, the sales, the secretary, the customer service rep and the toilet cleaner. You may think you’ll be busy, but you’ll be busier than that – trust us! As experienced accountants for start-ups, and as a business owner myself, we know how busy you will be. A start up needs an accountant to help them keep the finances and books up to date. If you let it slip it could have disastrous effects on the business.
Taxes Aren’t Simple
Calculating your estimated tax payments can be tricky. In fact the National Federation of Independent Business surveyed small business owners on their concerns. Every month when the survey was repeated and the report shared ‘taxes’ always ranked highly of the list of business owners concerns. Your start up needs an accountant to help you understand your tax payments and your tax code. You will find a good quality accountant to be a huge source of relief when it comes to taxes and dealing with HMRC.
Accountants Are Liked By Investors
As an entrepreneur you may be great at pitching your business. However, when you start talking to investors they will want to see and hear more than just your pitch. Investors want to see hard facts which includes your current figures, a financial forecast and growth projections. By working with an experienced accountant for your start up, even if you are not looking for investment now, you will be more attractive to investors.
Growth Is Made Easier
While you know you want to grow your business, it is not always that easy. When is a good time to expand? Which part of the business should you expand? How far can your finances be stretched without putting the business at risk? A good accountant will be able to help you plan for the future and plan for growth. It is always a good idea to run ideas past your accountant and they can then offer advice and guidance to help you.
Reports show that 3 in 5 businesses fail in the first year of business. Many studies show the reason behind this failure is poor financial planning. While start up accountants may look like an expensive luxury for a start up business, you’ll be amazed at how much help they can offer you and how much money they can save you over time.