When should you hire an accountant ?
When is it the right time to hire an accountant ? I would say at the beginning of your entrepreneurial journey would be best as the accountant can be a great asset to start your business and guide you through the first year.
However, I understand perfectly that at the beginning of being a business owner, money doesn’t always allow you to hire an accountant. So here’s some situations that scream: It is time to hire an accountant !!
You are spending more time on your accounts than your business
This one is the most obvious reason. Your primary role in your company is to make it grows; And how can you do that if you have your head in your tax return and your books most of the time ?
To estimate if your time would be better spent working on your business, you need to value your time. Let’s value your time at £100 per hour and say that you spend 10 hours a week working on your accounts, that means £1000 per week is spent working on your finance and not on your business. With figures like that, it might be time to hire an accountant ;)
You are experiencing rapid growth
Things went better than expected ? That is excellent ! However, with success comes more staff, more inventory, change or more processes and definitely less time to put keep your books up to date.
Don’t allow success to let you lose your focus on managing your business. Turn to an accountant who’s focus will only be on your finance. That way, they will help you to stay on top of your finance and allow you to focus on running your business.
You need to ask for a loan or overdraft
Asking investors or the bank to lend your money isn’t easy. To make sure you have everything at hand that looks professional, you will need an accountant. They will be able to create professional documents that show your last 5 years and forecast the next 5 years. They will also be your best help to ensure you are not missing any critical documents. A point that we tend to forget is that accountants closely with other businesses in the financial sector. This means they probably have contacts to refer you. Here at PRWS, we have a close relationship with Capitalise and that is to who we refer our clients. Click here to see how PRWS and Capitalise can help you.
You don’t feel in control of your finance
You are passionate about your company and your field. However, you don’t know if you are paying the right amount of tax or if you will make profits next month. These are excellent reasons to hire an accountant. At PRWS, we believe that a business owner who is on top of his finance will reach success. This is why we help business owners to understand their finances so they know what they can do and where they can bring their business. Of course, we ensure that you comply with the law, but we go one step further and provide you with documents and do budget, forecast, inventory to allow you to be in control of your finances.
You need financial advice
You are ok to file your financial documents on time to HMRC and you comply with the law. However, you are thinking about changing a component in your business, like hiring a new member of staff, adding a new line of products or maybe retiring and you don’t really know how it can affect your finance. It’s time to go see an accountant. They will help you to get perspective on your finances and offer you valuable insights on what your finances are letting you do for your business. They are the reference to create business plan, to develop projections, to ensure your business goals are aligned with your personal ones and to establish a retirement plan. As you can see, an accountant is the tool you need to develop and grow your business.