Most ventures are launched with limited resources, so saving is one of their main weapons in the market. And that’s fine. But the accountant is one of those resources that must be dispensed with after taking the first step or during the development phases of the company. There comes a time when companies need the professional services of someone with the right knowledge and experience to regulate the business in the accounting field.
In addition to the fact that he is the professional in charge of making the opening entries, essential when starting any economic activity, there are several compelling reasons that justify hiring him from day one for your SME (small to medium enterprise).
Assists in the development of the Business Plan
Every good company starts with a coherent business plan. And if you have developed one, you should know that preparing the financial section is somewhat complicated, and if it is not successful, it makes financing difficult. In this order of ideas, the accountant is the right professional to support you in your company’s accounting. He can accurately develop financial projections (usually five years) and the corresponding income statement.
In turn, they also have the necessary knowledge to establish the break-even point correctly and the ROI. They can even provide you with support in planning operations so that they are as economical and profitable as possible.
Advises you on the constitution of the company
Setting up an SME or any type of business goes far beyond choosing a good name, renting an office and opening to the public. Before doing so, you must, among many other things, decide which type of company or structure is best for you (Stock Company, Limited Liability Company, Limited Liability Company, EIRL, etc.), prepare a constitution document, open company books and accountants, and choose the tax regime that best suits the specific characteristics of your SME.
An accountant is the ideal professional to advise you on all this process and decision-making. This will allow you to take your first steps on solid ground and avoid unpleasant surprises in the future, such as additional payments for fines, interest and omissions.
It is essential at a start-up.
The main function of accounting is to provide useful, timely and reliable information for decision-making in the company’s financial, tax and legal fields. Therefore, having the services of an accountant is key from the beginning; at least if you have clear growth goals and want to avoid operating amid managerial uncertainty, which almost always leads businesses to bankruptcy or stagnation.
Frees you from time and obligations
In general, any venture -especially when it has very limited financial resources- requires the active support of its founders in many operational and administrative areas. But accounting is a separate case and usually demands specific knowledge and a significant amount of time.
If you dedicate yourself to carrying out the accounting tasks of your SME, you will lose too much time that you can invest in the execution of tasks in which you are an expert and in the search for new clients. Therefore, the accountant becomes indispensable from the beginning.
Although their lack of inclusion in the payroll might seem like a saving, the truth is that in the medium term, not having their services generates a more significant expense represented in the time you invest doing your tasks and correcting the mistakes you may make as a result of your lack of accounting knowledge.
It helps you reduce the amount of your tax obligations without falling into evasion or avoidance.
All SMEs must pay taxes from the first year of exercise, seeing their profitability, liquidity, and financing costs affected. But evading them is not a legal option and circumvention. However, it uses legitimate strategies to reduce its cost, is considered unethical and is even rejected by some sectors of society.
However, what you can execute freely is due and intelligent tax planning, understood as the planning carried out by the taxpayer to take advantage of the tax benefits contemplated in the legislation.
Accountants are experts in this, they will NOT look for loopholes in the law to evade taxes or popular tricks to end up evading them, but rather facilititate so that, at the end of the tax period, the value of the SME tax obligations affects its business as little as possible i.e. minimise tax legally
Facilitates access to financing
Both investors and financial institutions evaluate companies’ accounting when financing their projects. For this reason, every SME must have an accountant from the beginning, trained to generate financial reports and balance sheets that attest to the economic and financial health of the business, as well as its fiscal responsibility and balance sheet.
For the rest, you can check, at any time, the opening accounting entry and the records and reports made by the accountant during his tenure to carry out managerial analyses focused on determining the level of business growth, monitoring its progress and detecting shortcomings to correct.
In the early stages of your venture, it is best to hire an external accountant to reduce costs. When the business is consolidated and begins to grow, you must hire a a firm like IMT Accountants & Advisros who becomes a full-time advisor in making relevant decisions for the future of the business.
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