Many young entrepreneurs do not view accountants as an important stakeholder for a start-up. As matter of fact, accountants are viewed as superfluous by a significant number of young business owners (www.investopedia.com). Many of these entrepreneurs think that hiring an accounting firm when they are setting up a start-up is an unnecessary cost. They reason that accountants are only useful and economical when their business expands and becomes successful. Although the decision to hire an accounting firm when starting up a business is an individual decision, choosing to outsource accounting services has its share of benefits. This article explains the benefits that a business owner can enjoy if they hire an accounting firm when starting up.
Helps keep up-to-date accounting records.
When you are first starting out, chances are high that you are going to be your sole employee. What that means is that you are the only one responsible in making sure that every aspect of the business runs smoothly. You are going to be the secretary, the salesperson, the customer care service provider, accountant among others. Letting any of that slip could turn out to be disastrous. Hiring an accounting firm at this point will see to it that your books are always zeroed out and constantly updated.
Accountants can double up as business advisors.
Contrally to popular belief, accountants are not just there for tax purposes. They are some of the most experienced people when it comes to running a business profitably. A reputable accounting firm will already have dealt with thousands of clients who were at one time in your exact situation. They know exactly what worries you and they can also offer assistance in navigating the regulations, rules and compliance requirements of the city or state in which you live in. This is priceless for someone who is just getting started (www.accountingtoday.com)
Accountants attract investors.
One goal of a start-up business is to increasingly expand and generate more revenue. Investors are a sure way of achieving this. Many investors are interested in seeing your growth projections, accounting figures and hard data. Being a young entrepreneur, you may not be in a position to supply this. As such, having an accountant at the start of your business means that you have someone who knows, understands and has closely observed your finances and accounting records from the very start. Accountants are invaluable allies in creating financial projections which are reasonable. They also play an important role in proving that your business is solvent and well maintained.
It makes it easy to grow and expand.
Many entrepreneurs who are getting started do not know when it is the right time to expand. They may also not know the furthest they can stretch their finances without putting the affairs of the business at risk. When you hire an accounting firm when starting up, they can help in pinpointing when the business is picking up, when to take extra orders and when to stock up. These are some of the most important business decisions and if they are not made at the right time, the whole business may be placed in jeopardy.