Many startup owners will choose to manage their own accounting in order to save money wherever possible. However, if you aren’t experienced with business accounting, you could be making mistakes that could potentially affect the success of your business. Read on to learn how outsourcing your business accounting can save you time and stress.
What Can an Accountant Help With?
Accountants can offer their expertise at all business stages, from starting up to expanding.
Business Formation
During your startup’s early days, an accountant can help you with steps like:
- Selecting the proper business structure from a tax and legal perspective
- Setting up your expense tracking procedures
- Helping you establish a startup budget
- Advise on financial planning
- Setting up invoicing systems
Day to Day Administration
There are a lot of financial responsibilities when it comes to running a business. Having an accountant can help you with things like:
- Payroll
- Tax preparation
- Reconciling bank statements
- Managing audits
- Accounts payable & accounts receivable
Expansion & Growth
When it comes time to grow and expand your business, your accountant can help with:
- Financial forecasting
- Budget creation
When Should I Hire An Accountant?
Exactly when a company decides to bring on an accountant varies greatly. While there isn’t one correct answer, here are a couple of instances where it’s highly recommended you hire an accountant:
- You have raised an initial round of funding. If you have raised a Series A, a larger SEED round, or a larger convertible debt round, it’s definitely time to reach out to an accountant.
- You’re starting to see a significant increase in your expenses. Once you start having increased expenses to keep track of, or start hiring employees, it’s nice to have an accountant to help you keep track of your finances.
Other Reasons You Should Consider Hiring an Accountant for Your Startup
You’re Busy
If you’re currently operating your startup as a one-person show, you have a lot of different roles to play! Outsourcing some of your work to an accountant will make your life easier, and ensure that your finances are being taken care of properly.
Investors like Accountants
Investors are looking for more than a good pitch, they want to see the numbers to back it up. Having an accountant on your team will be an invaluable resource when it comes to creating a solid financial report.
Even if you have the best business idea, your company is going to have a hard time succeeding if you aren’t properly managing your finances. Gain some peace of mind knowing that your business’ financials are in the safe hands of an experienced accountant. If you’re looking for some help with your corporate accounting, contact the team at Liu & Associates today!