Starting A Business? Don't Forget To Hire An Accountant

Posted on: 1 June 2016

Studies show that some of the primary reasons that businesses tend to fail is because they fail to plan financially, such as with liquidity problems and insufficient cash flow. In some cases, this may be due to the fact that these businesses didn't have an accountant. An accountant can prove to be a significant asset to new and old companies alike. So, if you're starting a company, here are three reasons you need to consider hiring an accountant:

You Will Need To Focus on Running the Business.

When your business first gets up and running, you probably won't have any other employees. It will just be you – and maybe your teenage child. This means that you are going to be required to do everything and be everyone. You will need to be the secretary, customer service associate, marketing head and CEO. It's going to get hectic and you're going to be incredibly busy. When your printer breaks down and the phone is ringing off the hook, you'll be multi-tasking. You won't have time to keep your finances and books in order despite the fact that it is vital to do so. When you fail to do this, your business can suffer. So, hire an accountant to maintain your books and keep them balanced so that you can run a successful business.

Taxes Can Be a Total Pain.

You know how you hate your personal taxes? Well, business taxes aren't any better. In fact, they're probably worse. Under the Credit Markets section of a 2016 survey from the National Federation of Independent Business, 21 percent of small businesses said that taxes were one of their primary business-related problems. Taxes can be tricky, so it makes sense to leave it up to a professional who knows the U.S. Tax Code in and out and can get you the deductions that you qualify for so that you're not paying more than you have to.

Investors Like What Accountants Have to Offer.

As a start-up, there is a good chance that you are probably going to want to expand your business. However, it is hard to talk to investors when you don't have solid data to back up your pitches. After all, investors want and need to see real research. They want to see growth projections, hard data and figures that back up what you're saying. They want to know that if they invest in your business that they're going to come out on top. An accountant on your side from the start can be an invaluable ally when it comes to demonstrating your company has what it takes to succeed in this world to investors. 

Contact a company like Homer Wilson & Co Ltd for more information.