Why does a startup need to hire an accountant?

Why does a startup need to hire an accountant?

For a new business owner, accountancy can seem like a simple process where one simply fills up some tax documents and adds a few numbers. But if you try it once, you will get to know the complexity of it all! Accountancy has never been easy, or straightforward in the history of human civilization. Accountancy has become even more specialized than ever before. Only a certified accountant is reliable to handle the financial complexities that can confound a new business owner. 

It is a critical part of the business process of a new company which wants to keep a balanced financial sheet from the very beginning. 

So, what is the role of an accountant or an accountancy firm? And why is it indispensable for your business? The main role of a bookkeeper or an accountant is the correct interpretation of the financial records of a business process, and see that the records follow the laws that govern the state. An accountancy firm lays the foundations of the legal structure by which the company handles its important business functions. 

 Typically, these are the key functions where the role of an accountant become important; 

  1. To ascertain compliance of financial documents as per regional and national laws
  2. Filling up crucial tax records on time
  3. Handling salary processes for the employees
  4. Work towards financial efficiency of a business by identifying potential areas for cost-cutting
  5. Setting up automated accounting software for best results

The job role of an accountant is pretty serious, and there is no chance of oversight or dishonesty. Even a small mistake by such an individual can cause a lot of problems for a business. Here is why every business owner in Newcastle hires an accountant or an accountancy firm; 

Tax laws are complicated in our country:

Tax laws are complicated in all countries! Tax laws and codes keep on changing, and to keep up with the same might put a lot of pressure on the CEO of a new company. It takes a lot of time, and a lot more attention, to correctly understand the financial laws. See an accountant as a guide book who can help you navigate your new brand new project amidst a labyrinth of laws, and documents.

Multiple assets can mean multiple problems for a startup:

Sometimes, the owner of a company might be earning through other financial assets as well – ancestral property, share dividends or any other source of income. Multiple income avenues can be great for a business owner. But it can make your tax-paying process way more complicated than you want it to be. You might miss out on additional tax savings that only an accountant is aware of. 

Save all the time that you can!

There’s a lot on a new business owner’s plate, and he needs to pay equal attention to all the aspects of a business’ working. Tax or financial records is a different level of expertise where the certified professionals are more qualified and financially literate than anyone else. Time is also money! it is best to spend it on an accountancy firm which has specialized experience than compromising your business hours in comprehending laws, and financial sheets. 

Your business is picking up, while you are buried under a pile of some more financial documents:

A lot of startups pick up swiftly initially. When it does, it needs to devise a new strategy for a smooth transitioning. A growing business needs to make swift decisions regarding hiring more staff and serving new clients. An accountant can look at the whole financial setup, and keep a close look at key financial metrics. He is skilled in identifying important cost-cutting opportunities and provides financial stability while your business grows and prospers. A new business can not at any stage lose control of its financial health. 

A must for a freelancer or a self-employed individual:

Freelancers in every industry require accountancy services just like a startup does. Everyone needs help to handle BAS and PAYG instalments. Self-employment is rewarding, but it also makes a person solely liable for any kind of intentional or genuine misgiving. If you’re at a stage in income generation where you feel that you’re making enough money to hire an accountant, make sure to do so immediately. 

     Hiring an accountant is not a matter of choice. It is a matter of compulsion, especially for a startup, which is just beginning to understand its tax liabilities and financial processes. The numbers game has never been fair and square, it never will be! Many reputed companies hire accountants in Newcastle to lay a firm financial foundation for their startup. For many CEO’s, an accountant is an ultimate and a full-time financial advisor who is available to answer the best financial solutions for a range of questions that concern a newbie. 

David Robertson