8. When and why do I need an accountant for my start-up?
A common question we hear in the early stages from entrepreneurs is, "why do I need an accountant?" As the previous sections on this page have demonstrated, managing the finances of your start-up is anything but an easy task. Unless it's a skill of yours and something you really want to do, it could take up valuable amounts of your time and distract from other vital business areas.
Developing your concept, building your network, servicing customers, building your brand and making sales will likely be higher up your priority list. You're unlikely to sufficient time for understanding the intricacies of things like allowable business expenses and processing them.
Unfortunately ignoring the finances by not putting a system in place to record transactions is not an option. You need statements for income, cash and profits once the sales start coming in and the business generates money. This is a vital means to gaining access to finance and calculating your tax liability. Fail to do the later and you'll probably be facing a hefty tax bill.
This means the likelihood is you're going to need to work with an accountancy firm from the very start. A good advisor will keep you compliant with all filing, legal, tax and regulatory requirements. This will save you significant time by providing you with insight, from their experience of guiding other start-ups, as well as analysis, regarding how well you're doing and what can be achieved through your financial position.
Be sure to find an advisor that shares the same passion for your business as you do and has a great track record of client service delivery. Ultimately your accountant is an investment and akin to an essential member of your team.
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