By nothingbutnet, Sep 17 2015 01:38AM
Tax time is right around the corner, and this is the time to start thinking about hiring an accountant. Sure, this may sound like an extra expense, but there have been many small business owners and high-paying individuals who have lost out on a lot of money because of errors with accounting. With that said, let's discuss five reasons why you must hire an accountant.
1. Help Transact With The Government
Not only can an accountant help you with your tax obligations, but they can help you complete and submit any legal documents before operations or changes start. Sometimes alterations in tax laws can occur and when they do, an accountant will let you know about such changes. Asides from all that, an accountant will keep records of revenues, expenses and tax codes of your employees, and they can manage your payroll.
2. Offer Advice In Regards To Creating A Business Plan
Accountants can offer you advice when it comes to creating a business plan. With the advice they provide to you, you will be able to create a business plan that is realistic, as well as a plan that has a good chance at succeeding. When you hire a good accountant during the early stages of your business, then you will benefit from their knowledge.
3. Explain Legal Business Structures In A Basic Way
There are different legal business structures and an accountant can help explain the different ones to you, and then you can choose the one you think suits you the best. For example, if you decide to be a sole trader, then you may end up being personally reliable for business obligations, which means you could be the target of creditors in the event that your business fails to pay suppliers, not pay debts and things of that nature. A limited liability company structure allows you to not be held personally.
Not only can an accountant provide you with basic info about legal business structures, but they can go into even greater details about each type of structure. For example, they can explain legal obligations associated with being sole proprietorship, corporation, partnership and limited liability company. There are a lot of different things that you should know about each structure, and a good accountant can explain everything to you, and then you can make an informed decision.
4. Help Prevent You From Losing Money
You need to hire an accountant when you notice more cash is going out than what is coming in, and they will be able to identify areas that you need to improve in and which areas you can just do without. There are software products that accountants can use and this allows them to produce you a presentation that you will easily understand.
5. Help With Getting A Loan
A good small business accounting company can help you get a loan fast because banks will take you more seriously when you have an accountant by your side. Also, an accountant will make sure your tax obligations are being met, and they will help you with presenting reports that can convince the banks to approve your loan application.
Are you based in Melbourne and are you a small business? If you need a Melbourne small business accountant has plenty to choose from, so find the right one to hire today.