Why Small Businesses Benefit from Hiring Accountants: 9 Reasons
We have all heard that most start up companies are out of business by the end of their first year. Could professional accounting prevent some of these failures? The article Nine Reasons Why Entrepreneurs Should Hire an Accountant, published on the Globe and Mail Online, says yes.
“It’s apparent that we must help startups understand the importance of working with dedicated professionals,” says author Jennifer Warawa. Warawa explains that a professional tax accountant will be able to partner with your small business to help you navigate your startup’s first year.
9 reasons to hire a professional:
1. “Focus on why you started your business.” Entrepreneurs generally work to grow their business quickly—research shows that more than half of small Canadian business owners surveyed went from business idea to opening in less than six months.
Startups cannot afford to waste time by becoming bogged down with tasks that take them away from their prime directive. Accountants will manage numerous aspects of your business, allowing you time to develop your business goals and strategies.
2. “Find work-life balance.” Entrepreneurs must maintain balance when starting up a company. An accountant can take on tasks you find difficult and time consuming, leaving you time to market, sell, and even relax.
3. “A professional reputation.” Startup companies need to represent themselves positively and professionally in all areas — a good accountant will help you brand your company in the best possible light and earn credibility in the business world. Building positive, long-term relationships with key players, such as banks, is important to building a strong business foundation.
4. Evidence supports it. According to a Sage survey, working with an accountant is a critical element in a company’s success.
5. “A new perspective.” Strategizing with an accountant can be like taking a step back, looking at the bigger picture and gaining a fresh perspective. It often takes someone from the outside to come up with new ideas that will help you grow your business.
6. “They have reach.” Warawa stresses, “Don’t underestimate how valuable it is to receive guidance from someone who has insight and knowledge across hundreds of businesses and industries.
Accountants not only get to see the financial information of many businesses across a variety of industries, but they also get an insider’s view of the best practices that are working for other businesses; as well as the mistakes others have made that have led to failure. Being able to have this insight and share information on what has or hasn’t worked for others is invaluable – why reinvent the wheel if you don’t have to?”
7. “Businesses need a plan.” Lack of planning is why many startups fail. An experienced accountant will partner with you to create a road map to success based on data and years of first-hand experience.
8. “They understand tax.” Rules and regulations regarding taxes change frequently. Accountants are able to stay current on tax laws and this keeps your business compliant and in good standing.
9. “Analyze data for growth and profitability opportunities.” All of the data you have accumulated is worthless unless you are able to interpret, analyze and use it to drive your business decisions. A competent accountant can help you sort through your data and crunch the numbers to create a strong business platform.
To read the original article in its entirety, please visit The Globe and Mail.