Does your business need an accountant?
When you are first starting out with a new business venture something you will need to take into consideration as you grow will be whether or not you require a business accountant.
What exactly does an accountant do for a business?
Their main role will be to help you and your business meet all your financial obligations to the government. They will be able to declare your fiscal position to the government of the country you operate in, and they will also be able to file your tax returns correctly and on time. They might also be able to help you with business decisions and plans.
When you are looking to hire an accountant, you should preferably go with an accountant that is qualified and has the expertise of the tax system of the country where the business is established. Most likely (but not necessarily) if you are reading this your business will be set up in the UK; Omer & Company for example will be able to assist you in your tax obligations if your business is in England.
When determining whether or not you need an accountant for your business there are numerous factors that you will need to take into consideration.
The size of the business is a significant factor in whether or not you will need an accountant. Large scale business will absolutely require an accountant and the larger the business gets quite often the number of accountants required also increases. The smaller the business the more difficult it gets in determining if an accountant is needed.
As your business grows the need for an accountant will increase due to a number of reasons. When you are first starting out there will be fewer transactions and money going through; so, there will be lees to keep an eye on. You will also most likely have the time to be able to do the taxes yourself as there will be less to manage from the business perspective. Of course, though this isn’t always the case; many new business owners will tell you that during the lifetime of a business the most work you will be putting in will be at the start to get the business off the ground. So, you need to consider if an accountant will be able to take something off your hands that will help free up more time to make the business successful.
Many new business owners worry that an accountant may be an expense that they don’t need. That usually just isn’t the case though as having someone that is experienced, and in the position to help you manage your business’s money better should in turn help you save and potentially make more money in the future. They should also help you avoid any unfavourable fines (if this should happen), they should also be able to help you stay on top of your taxes so that you don’t end up with a surprise bill if you haven't been filing your taxes correctly.
Another important thing to consider is simply; will you be able to do the work required for the business to be fiscally complimentable? This just means do you have enough of an understanding of how the tax system works in your country to be able to do your taxes correctly.
Deciding whether or not you need an accountant is something that you are going to have to consider sooner rather than later when you are starting out in the business world. It can be incredibly costly and time-consuming to need an accountant and not have one, so make sure not to take the decision lightly.
