While beginning your journey as an entrepreneur you will face challenges that will cripple you both mentally and physically. Starting your own business isn’t an easy task and requires a lot of prior planning and decision making. Now, most entrepreneurs decide to shelter the responsibility of managing the finances upon themselves. This is a very inefficient method and will hurt your productivity down the line.
Let’s assume you hire yourself in your company for doing your taxes. You happen to charge 100dollars an hour for your services. Assuming that you take roughly 8-10 hours to complete the job, your bill stands at 800-1000 dollars.
Now imagine this in a real-life scenario. You doing your taxes costs 1000dollars an hour, with the possibility of mistakes since you’re not an expert at the job (if you are, then good for you, but it’s still not as efficient as hiring an individual for the job). Add to that other workload such as running your own company. Doing your taxes while the next expansion plans are still fresh in your mind is not a good idea.
Compared to the amount of effort you are spending which, let’s be honest, is doing more harm than good to your business. Therefore, no matter how you look at it, hiring an accountant is an absolute necessity when starting a business.
Many startups ponder on the thought of hiring one but shy away due to cost issues. What they don’t understand is that the time they are laboring away on various financial paper works is better spent on something they are good at. They are losing precious money and time by investing precious manpower in areas they don’t excel in. They also don’t realize that hiring an actual accountant is much cheaper, compared to the efforts they are putting in at the job.
Accountant services include two key roles in a company. Their primary job is to record and monitor the financial transaction happening in the system and provide a printed report on the expenses.
Their other job is to counsel the owner of the business during crucial and expensive mergers or expansions. They point out the potential of any investment and how it will affect the company in the coming years. All of the information is of course based on strict analysis of your business and the present market condition. They can even run simulations and predict any special profits or loses you may encounter when entering these deals.
Therefore, the contribution of an accountant is paramount not only in terms of managing the business but also in terms of future growth.