Is Hiring An Accountant Necessary For Your Startup?

Do you have to hire an accountant for your new business? Accountants are known to be beneficial at different stages of small business growth. But as a startup owner, you might not be keen on hiring people to handle your cash flow and day-to-day finances. Perhaps, you would rather do the work yourself instead of spending your revenue on help.

It’s typical to wear multiple hats when launching a new business. But is doing the job of an accountant one of them? Managing your startup is already a huge task. So having a professional accountant could free up some of the headaches and legwork. However, you probably want to lower your expenses as much as possible.

What to do, right? Before you go ahead and decide on this, below are several factors to consider for a more informed decision.

What can a business accountant do for you?

Understanding what a business accountant can do for your business is a good starting point to determine whether you need their service. Preparing tax returns and financial statements is likely the first thing that comes to mind when thinking about an accountant. But they can do more than tax filing and managing the details of your assets, debts, and revenue.

Accountants won’t only organize your data during tax time but also throughout the year. They are also fully equipped to project your cash needs, minimize your tax bill, etc. Your business can start on the right foot and grow exponentially with an accountant. They can help turn your financial, administrative, and business goals into reality.

When is it necessary to hire an accountant?

Every business is unique, and the proper time to hire or consult with an accountant may vary depending on your circumstances. Below are some key moments when bringing an accountant on board will be most handy for your startup.

Creating a Business Plan

Your startup needs an effective business plan. It’s like a road map to help you legally start and operate your business.

There’s no right or wrong way to create a business plan, as it depends on the specific needs of your startup. However, one vital element to consider is your new business’s financial information and projections. It’s one of the factors that will help determine whether you will get funding or not. You can better ensure that the plan is financially sound and has achievable outcomes if you have an accountant on board.

Deciding on a Legal Structure

Deciding on a legal structure is one of the most critical decisions you need to make as a startup owner. It will significantly impact your company’s tax obligations, legal liability, and overall financial success. Using their financial knowledge, accountants can help you decide on the proper legal structure for your business.

Complying With Tax Obligations

Business taxes can get complicated. But accountants won’t only ensure that you keep accurate records and file your taxes on time. They can also help you strategize all year round and minimize your tax bills.

Getting an accountant’s help is even more vital if you conduct business in Toronto, Ottawa, or anywhere in Canada, where the tax regulations are overly complex. With the best CPA in Toronto, you can be confident that your startup makes the most of tax deductions without violating any tax law and legislation.

Financial Planning and Management

Planning and managing your business’s finances are among the biggest challenges startup owners like you might face. Besides complying with tax payments, an accountant will provide you with many financial insights, such as business trends, costs, and revenue. They can also help figure out how much capital you’ll need to hit in the future and how to execute your financial goals.

Manage Your Startup’s Finances Better With an Accountant

Handling your startup’s finances can be overwhelming with so much on your plate. While you can utilize software to automate your financial-related tasks, you still need an accountant to make sense of your financial data. Note that you don’t have to hire a full-time one right away. You can outsource an accountant’s service per project and period or as needed.

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