On the surface, it may seem as though a start-up company is not large or complex enough to warrant an on-staff accountant. However, start-ups stand to benefit from the services of a professional accountant on staff in the form of cost savings, improved efficiency and sound financial advice. Here are just some of the ways a fledgling company can benefit from professional accounting services.
Choosing a Business Model
The difference between a start-up and an established company is that a start-up typically has not settled on a well-defined business model. As the owner of a start-up, you are testing business models to see which one works best for your company. Selecting the right business structure, manufacturing and distribution techniques, and marketing strategies for your venture requires a thorough knowledge of financial and accounting best practices. Having an on-staff accountant can potentially save you thousands of dollars and hours of time by helping you find the best business model as quickly as possible.
As your business grows, you are likely to need more financing. Because accountants work closely with your financial records, they are qualified to advise you on the status of your stocks, how much money you need to break even, the amount of funds in the bank, investments, and other means of raising capital. Accountants can further save you money by helping you navigate complex tax issues. Since taxes are one of the largest expenses a business has, it pays to have an accountant who can help you legally minimize taxes.
No one knows your company's books more intimately than your accountant. Because the accountant keeps a running record of assets, debts and cash flows, he has plenty of information to help you make informed financial decisions. Having an accountant on staff is essential to your company's financial growth and future fiscal well-being.
Accounting records provide a snapshot of where your company is at a given point in time. This enables accountants to monitor your company's performance, establish budgetary guidelines and forecast cash flows. The feedback your accountant provides regarding these metrics greatly contributes to the health and value of your company. Your accountant can also offer advice about bookkeeping services you might need to help you develop a deeper understanding of the state of your business.
Unless you or your business partners already have extensive accounting knowledge, it is advisable to hire an on-staff accountant for your start-up. Not only can accountants provide bookkeeping services that help ease some of the financial hiccups associated with new ventures, but they can help set your company up for long-term success by providing extensive financial and some legal counsel. Give your new business a running start by hiring an on-staff accountant.
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