When is the best time to hire an accountant for your company?
It is no brainer that accountants help in each step of company’s growth. However, it is not necessary that company must hire accountant on full time basis when the work can be done by outsourcing to accounting service consultants. Most of the times in small business, a couple of hours is enough for accounting job.
When the business is small and growing, cash is tight and extra effort is made by business owners to minimize such overheads. In this situation, business owners start recording financial transactions themselves or filing up the tax return themselves. On the other hand, business progresses rapidly, business owners need the help of accountants for carrying out traditional services of basic bookkeeping as well as providing consultancy for expansion and growth of the business. Here we will analyze the situations, it becomes necessary to hire an accountant for your company:
- TIME IS MONEY: It is possible that while starting as a small company, the accounting tasks were all done by yourself. When, the company progresses, you need to ask yourself, what is the worth of your time. You must take calculative approach-based cost benefit analysis to reach at conclusion whether to hire an accountant or not. If it is worth to hire accountant and it is beneficial to the company, you should hire an accountant. Delegating the accounting tasks to professional accountants will save you from unnecessary stress in the business.
- Company is growing rapidly: Rapid growth requires rapid internal expansion as well. To become organized to the scaling of the business, You should cater to inventory growth, rapid hiring and adaptation of robust internal controls. To keep in line with this development, a lot of numbers need to crunched, and accountants come to play vital role at this crucial juncture of business. Hiring accountant not only gives professional advices but also suggests on the growth of the business.
- Expansion of Business: Ambitious businesses are in-built to expand. They grow beyond borders. Expanding beyond borders means complying with new rules, regulations and laws. Accountants help the businesses to comply with Tax laws and other tax reporting requirements. Expansion also include internal expansion. It means investing in assets and human resources. Accountants provide very calculated approach whether the company should buy or lease asset, how can the company be able to finance this big purchase. Accountants easily analyze the financial situation of the company and liquidity available in the company.
- Raising of Funds by the company: Raising funds by the company is uphill task. The company’s financial statement comes to detailed scrutiny by those analysts at banks or other financial institutions to derive at conclusion whether company would be able to service and repay the principal by the internal accruals or else in special circumstances. Accountants help in preparing financial forecasting to the company. Further, if the company has existing loans, accountants can help to prepare financial reports on current basis to serve the lenders.
- Require professional advises on regular basis: Certified Public Accountants (CPAs) although have accountants in it, but they do wear various hats. They offer advice on balance sheet analysis, receivables analysis, creditors payment schedule, accountancy and tax compliances. For Instance, slow moving stocks are increasing in closing stock. CPAs with their expert brains would analyze all the trends in the stock movements, analyze the cost and sale at distress value to arrive at the best scenario for the company. An accountant helps to diagnose similar situations and helps the company in achieving its goal and objectives.