When is the right time to hire an accountant? - Wright Vigar
 In Advice, Blog

When to hire an accountant

When a company starts out, it is common for the owner to undertake all the key roles in the business, including the role of the accountant. At the beginning of any business venture, it is vital that costs are kept to a minimum and finances are under strict monitoring. However, there inevitably comes a time when business owners must realise that they cannot do everything themselves and could benefit from the expertise of a professional.
The amount of involvement an account can have will completely depend on the business. Whether they need someone to only do tax preparation work or whether they work with them on budgeting and financial planning, the role of an accountant is varied and can benefit businesses in many ways. Here, we discuss when is the right time to hire an accountant.

Need expert advice

As your business progresses, you will not only require someone to carry out the traditional accounting services but also someone who has the knowledge to be able to provide valuable guidance. Hiring an accountant can help you with this. As they have extensive knowledge and years of experience, they can help you take your business in the direction you want. Knowing you have their expertise to go to can be invaluable when growing your company.

Don’t have enough time

Although bookkeeping can be done efficiently using a basic platform such as Excel there will come a time that you need more in-depth accounts. As you continue to expand, you will not be dealing with all aspects of the business day to day and therefore will need to turn to the figures for important decision making. An accountant will be able to provide you with more comprehensive accounts using leading accounting software. This provides the business owner with a clear and deeper understanding of their company which wouldn’t have been easy to access before. Having this information is key to ensuring a business is operating as efficiently as possible.

Revenue is increasing but profit isn’t

There may come a time where the business is steady and revenue is increasing, however, you are not seeing this convert into an increase in profit. Accountants are trained in order to analyse your finances and make suggestions that will suit your business. If you are increasingly getting more revenue in but no profit, there is clearly a problem. Accountants will analyse your finances in order to discover what is wrong and advise on what potential solutions are available.

Change in business structure

Business structures all have their pros and cons. An accountant will be able to work with you in order to determine which structure will best suit the business and will be the most viable option to help you reach your targets.

The business has increased rapidly

If a business has suddenly grown, it can be overwhelming for the owner to meet this new demand. As scaling up involves a lot more stock, staff and internal processes, it is unreasonable to expect them to carry out all of the accounts as well. Being able to have the financial side organised by an accountant can help relieve a lot of the pressure of a growing enterprise. Leaving the number crunching and paperwork to a trained professional can help free up the business owners time to focus on the expansion and other areas of the business. They will also be able to give a professional insight into how to drive more growth in the future.

If you are planning on expanding your businesses to another location or even distribute in another country, an accountant will be able to ensure that all rules and regulations are complied with and ensure all tax reporting is correct.

Making a big investment

Many businesses turn to their accountant when they are wanting to make a big investment. Whether this is new equipment or new premises, an accountant can help provide you with advice on whether it’s a viable investment to make. They assess the businesses’ current financial situation and will be able to state whether it’s feasible to spend that amount. The estimated Return on Investment (ROI) will also have to be factored in.

Need to raise money

There may come a time when a business needs to look for additional investors apply for grants or loans. Accountants can play a key part in this process. They can help provide you with the relevant financial reports, management reports and financial forecasting that will be required when trying to secure any future funding. Once new investors are on board, they will need regular financial reports to keep them updated on their investment. Accountants can easily provide these on the business’ behalf.

It is imperative that businesses have their finances taken care of and there will come a time for most businesses to look to an accountant to help with this. Hiring an accountant should be seen as an investment rather than just another outgoing. The most beneficial thing an accountant can bring to a business is not only a great grasp of a companies’ figures but also knowledge and experience that, when used correctly, can help take a business to the next level and help them achieve their business goals.

Want to know more about how an accountant can help your business? Then Wright Vigar are here to help. Give us a call on 0845 880 5678 or email us on website@wrightvigar.co.uk

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