You could always opt to work through your accounts out yourself or delegate to a colleague. However, we know that you will be keen to use your time on tasks that will lead increased revenue rather than record keeping and tallying up outgoings. Perhaps your colleagues will also be eager to drive business and less than thrilled about poring over the figures from the last quarter.
Why not outsource to a freelance accountant or an accounting firm? Let them deal with the paperwork and deliver you a crisp and tidy tax return. But what do they actually do and will you be spending money needlessly? If you’re running a startup you’ll be wary of spending money without just cause. With a little more dedication could you not take a deep breath and plough through your financial records yourself? What does a dedicated accountant actually bring to the table? In this article we’re going to address this question.
1. Your Business Plan
If you are anticipating running a startup the services of a good accountant could provide enormous assistance in compiling your business plan. Even if you have already worked out your plan a pair of fresh financial eyes can help you to focus on the elements that are vital to making your business run efficiently.
An accountant can help you to set milestones along the way and work with you on the means to judge how well you are doing. A professional working with the latest accounting software will be able to offer you the tools to accurately analyse how well you are doing.
2. Going to the Money Men
A good accountant will be able to give you guidance on how your company will actually make money. You may have had an excellent idea for a new product or service but it may take the observations of a financial expert to show you the true value of your business and how it might give you the best return.
If you’re seeking outside investment your potential investors will be impressed that you have invested time and effort in seeking outside professional input.
3. Regulating the Cash Flow
Once it is up and running your accountant will help you to analyse your business’ cash flow. He or she will be used to working with new businesses and their experience will pay dividends when it comes to anticipating how and when your business might need a fresh injection of cash.
They will plan cash reserves and work with you on strategies to avoid running out of capital.
4. Debt Management
There will come a time in the lifetime of most businesses when they will have to accrue a small or large amount of debt in order to expand. If you need to borrow money your accountant will be the best person from whom to seek advice.
He or she will be best placed to work on the best deal for you and help your business to work out a realistic plan for repayments.