Why Should You Hire an Accountant for Your New Business?

Starting your own business is an exciting endeavour and one that comes with its own set of challenges. You might have an exceptional idea and a solid business plan but unfortunately, this does not ensure success. Implementing effective strategies and managing your financial affairs properly will most likely play a more significant role in determining the longevity of your new business. Luckily, a professional accountant can help you do exactly this! Many small business owners find hiring an accountant to be quite daunting but in truth, it could be one of the best decisions you ever make.

Let’s take a look at what an accountant can do for your start-up:

Setting up Your Business

Accountants can play an important role in your company from the very start. They will assist you in choosing the right type of business, that best suits your goals, and register the business on your behalf. They will file all of the necessary documentation with the South African Revenue Service (SARS) and file registration for all the relevant taxes and deductions.

An accountant can conduct a financial analysis of your business, regularly if needed, to assess its viability and profitability. Sound accounting is essential if you wish to accurately measure the success of your company and the efficacy of the strategies that are being used.

Help You Manage Cash Flow

It is safe to say that most business owners are not financial experts. And although it might seem simple to manage your company’s finances on your own at first, it becomes increasingly complex as your business grows. Accountants are experts at managing cash flow and they will always keep your budget in mind to ensure that you don’t overspend.

Accountants use sophisticated accounting software that allows business owners to have more insight into their cash flow. This enables you to have instant access to up-to-date financial information, something that is often critical to decision-making. This software can also help you manage your inventory and can even provide guidance when setting prices for your products by considering the cost of sales.

Ensure That You Remain Tax Compliant

Let’s say you want to hire an employee to help with the workload. Being well-versed in tax laws, your accountant will be aware of all the various taxes, contributions and deductions that a business is responsible for with respect to its employees. These include UIF, PAYE, SDL and Workman’s Compensation to name a few, so by hiring an accountant you also provide yourself with some peace of mind in this regard.

When the financial year comes to an end your accountant will compile and submit the company’s tax returns, in line with SARS regulations. This can be a stressful time for many business owners as they frantically try to get all of their paperwork in order. When you have an accountant by your side throughout the year, all of the information you need is already stored in a cloud-based system. Using this information, your accountant will simply file your annual tax returns online, and you won’t have to lose any sleep over taxes.

Booysen Accountants wants to help your business succeed and we will be with you every step of the way! Contact us to speak to one of our qualified accountants and find out how we can help your business thrive.