Each business worldwide is form with the aim of making profit. Although all objectives are important, the firm must also be profitable to be a going concern. For a trade to be profitable it must be managed properly. The most important aspect of business management is the managing of records and finances of the business. Many multinationals succeed because of implementing sophisticated bookkeeping mechanism unlike startups who undermine the value of good record keeping. This is why it is important for each startup and small businesses to engage an accountant. This article will consider the benefits of accountants to startups.
It is worth noting that an accountant goes through a comprehensive training in the area of finance. When a firm hires an accountant, the specialist ensures the business operations are in line with the legal and financial requirement. When a guideline is statutory in nature, the business firm must adhere to it. The payment of corporate tax, the filing of returns, filling employee’s tax obligation and payment of directors personal taxes is a mandatory obligation.
Furthermore, there are some taxes that are called withholding taxes which should be submitted from the point payment. Disregarding the laid down statutory obligation can put a business into a lot of problems. It would be regrettable for a proprietor claim they were not aware of the statutory obligation because the court will not be tolerant to the ignorance of personnel. This is why an accountant should be hired to give direction on the firm’s obligation. To avoid stress that comes with dealing with a record’s management system a wise entrepreneur should hire a qualified accountant.
When a business hires an accountant they are able to concentrate on one line of expertise. The services of an accountant relieve the proprietor of an SME from the burden of dealing with a task he is not proficient in. This may be dental services, general medicine, legal services, and retail services to mention but a few. The entrepreneur in such a scenario will have a free hand to concentrate on customer satisfaction. But if one person is left to manage all aspects of the business they will soon be exhausted and demoralized.
Other than record keeping, the accountant can be a trusted advisor who leads the business to higher levels of growth. The accountant can use the financial records to pinpoint areas where the business has wastage. He or she can then advice on steps that the employees or proprietor can take to cut back on overheads.
What would take a layman hours to compute will take a competent accountant a very short time. The work of an accountant is impeccable and therefore the firm will avoid penalties when they have a reputable one on board.