When it comes to startups and small companies, more business owners turn to coaches and mentors when they want to ask for help. On the other hand, their senior counterparts (long-time business owners), are more likely to rely on the services of bankers, lawyers, and accountants. When we take into consideration that many startups fail within the first year of business, they must realize the importance of working with dedicated and experienced professionals.
One of the main reasons why young entrepreneurs don’t seek the services of a professional accountant is cost. However, they shouldn’t consider their services as an expense, but as an investment. An accountant should be a year-round business partner, as their scope of work doesn’t end just with tax preparation. They can provide perspective and expertise in your industry to help you navigate through an uncertain economy and help your business grow.
The truth is that you should consider working with an accountant, and here are several strong reasons to support our belief.
1. Businesses need a plan
You’d be surprised to know that many businesses fail because they didn’t have any or valid business plan from the very start. This where an accountant can partner up with your business, analyze all the data, and help build a solid business plan. Having this kind of professional on your side can greatly increase your chances for success.
2. A new perspective
Business owners sometimes fail to see the whole picture, because they get entailed in all the daily business operations. An accountant is removed from the business, and can provide a different perspective that you, as the business leader, may have missed. Sometimes, all it takes to come up with the next big idea is meeting with an accountant, which can be like taking a big step back in order to look at the whole picture and gain a fresh perspective.
3. Find work-life balance
Many startups are usually small operations run by a few associates who break their backs to keep the company running. Thus, they often struggle with finding the right work-life balance, which eventually becomes their top challenge as startup owners. Accounting tasks are an aspect of work that you may be less than thrilled to handle, and they can be taken on by professional accountants. On the other hand, you’ll be free to focus on other things, such as selling, marketing, customer service, or a nice game of soccer with your friends after work.
4. They have reach
An accountant is someone who has knowledge and insight across hundreds of industries and businesses. Receiving a guidance from someone with that kind of reach shouldn’t be underestimated, as they not only get to know the financial information of entire industries, but also know the mistakes that have led other businesses to failure, as well as the best practices for avoiding them. Having this kind of insights is invaluable to your startup.
5. Analyze data for profitability and growth opportunities
If you have tons of data gathered in your databases, what are they worth if you’re not interpreting and using it to drive your business decisions and directions? With an accountant who can help you understand all the numbers, you won’t miss on a great opportunity for greater business profitability and growth in the future.
For instance, an experienced accountant will know when your Australian business might benefit from some small business lending in Sydney and provide you with means to grow your business and improve your chances of future success.
6. Vital to a company’s reputation
Startups are baby-companies that have to build their reputation from scratch. A good accountant will represent your business in the best possible ways, helping you to build strong relationships with players that have a key role in your success (such as banks).
It takes about 6 months to go from business idea to opening, because young entrepreneurs and startup owners are quite passionate. With such quick growth, business owners don’t have time to get bogged down with issues that don’t help their companies continue to grow. In these situations, they ask for accountant services. So, can your baby-company survive without the help of an outside accountant? Probably, but with the extra expertise, guidance, and insight, an accountant can provide additional means that will make your business prosper.