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4 Main Reasons For Hiring An Accountant For Your Startup

Aug 23, 2022

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More than 30% of business startups acquire the services of an accountant. Having an accountant for a small and new business is crucial, especially if you're striving toward growth. While most managers try to do the accounting themselves as a way of budgeting, outsourcing accounting services from a third party provides more benefits to the company in the long run. Here are four main reasons you need to hire an accountant for your startup.

Improved Cash Flow

A proper cash flow enables you to act upon decisions that help you run your business and facilitate its growth. Managing your cash flows and proper budgeting is crucial for a company; without cash flow management and adequate liquidity levels, a business can collapse despite its profitability. Acquiring services from an account will help your business practice credit control to maintain desirable liquidity levels. Making a budget effectively and managing your cash flows can help your business run its operations smoothly and effectively. The amount of cash your business generates should be enough to meet your day-to-day and long-term expenses, and an accountant can help you make a budget and manage your cash flow.

Lower Your Workload

Once your business is well established, you'll be more focused on its day-to-day operations. As your company grows, its finances will become more complicated to understand, and you'll need to hire an accountant to help sort out your business financial matters. According to information found at https://edmontonpadgett.ca/, a professional accountant can help your business by recommending improvements and bringing forth new tools and adjustments that help save both your time and your money. Dealing with a company that provides credible accountants goes a long way in guaranteeing you have someone that knows what they’re doing.

Help Your Business Grow

When growing your business, multiple aspects need to be covered, such as a recruitment process, improving your relations with old and potential customers, and budgeting your cash flow. An account helps a business run its operations while continuously introducing process improvements. Most business managers have a very vague idea of how financial and tax obligations work, and this is exactly where an accountant will fill in the role for them and sort out all of the business' financial issues, saving your time and money and allowing you to focus on other business operations. An accountant will be especially useful when you're cost cutting, deriving salary packages for your employees, and are looking for more business investment opportunities. To make your business grow from a financial aspect, you should hire an accountant.

It should also be noted that business growth comes with a few disadvantages of its own; sudden business growth can lead to cash flow issues, higher tax rates, and less office space. A professional accountant will use their expertise and turn the situation around to work as an advantage for the company.

Provide You With Business Advice

Accountants have the expertise, knowledge, and skills to work as excellent business advisors. Not only will your accountant help you effectively remove and eradicate any business problems you encounter, but they can also provide you with excellent advice that can help your company grow. For instance, an accountant can warn you about the potential financial risks of certain decisions and can introduce you to better investment and saving opportunities for the business.

See:  CPAs and the New Social Contract: The Rise of the Warrior Accountant

Unsplash image - 4 Main Reasons For Hiring An Accountant For Your Startup

Image: Unsplash

There are several ways that an accountant can add value to your company. Some managers are skeptical about hiring accountants, believing they can do bookkeeping by themselves. However, you need to acquire the services of professional accountants if you're looking to make your business grow and prosper in the future.

NCFA Jan 2018 resize - 4 Main Reasons For Hiring An Accountant For Your StartupThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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