Any company that aspires to grow over time needs to have its accounts in order from the first day of operation. It even requires an external accountant before its formalization; to have the business on track before starting its operations.
Entrepreneurs often make the mistake of thinking that they do not need to hire an accountant until they have more sales or contracts; however, if we wait for this to happen, we run the risk of missing out on many opportunities and making big accounting mistakes along the way that will cost us more in the long run.
Below are five reasons why a startup needs an external accountant. Take note! It will depend on this whether a business grows, stagnates along the way, or ends up failing.
- Comply with the tax regulations of the country
Each country has its tax regulations, which every person, business, or legal entity must follow. If the enterprise does not comply with the tax regulations that correspond to it, the company could incur fines, surcharges, be subject to audits, etc.
- Business will operate with the legal form that is suitable and corresponds
There are different legal forms by which businesses can operate. Before formalizing a business, one should go to accountants so that they can guide you on the one that best suits your business model and your needs.
For example, if you start a business alone, you can have greater benefits in incorporating a single member LLC than going for a sole proprietorship, since in this way a legal entity is created apart from you, which protects your assets and that of your family.
- Accountants can help in creating a business plan
Many ventures start without a path to follow, and this is risky since they do not know what next step should be taken to continue growing. For this reason, it is important to start by making a business plan that directs any undertaking.
As many entrepreneurs tend to focus their energy on their core business, accountants can help in drawing up a plan according to the business, real situation, and projections.
- Keep finances in order
With accounting firms, all the accounting and financial documents of a company can be kept in order. That way you are up to date with the payment of responsibility (both to suppliers and workers); it is known how much money the company generates for the activities and the debts that must be paid.
With all the accounts clear, analysis, forecasts, and decisions can be made that benefit the interests of the business. In addition, with the numbers in order, the company also becomes more attractive to investors.
- Professional accounting advice
Finally, another reason why it is a good idea to have an external accountant for the business is that in this way you can have accounting advice from a professional who remains up-to-date on the matter; so, you will know how to timely apply any changes that occur in the legislation, in the business, so that it continues to operate by the law.
This advice will also help in making important decisions regarding the business, based on real and updated information about your own company.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.