Challenges you face

As a small-medium enterprise owner, you will face many challenges during daily business operations. One of the common challenges that you will face is multi-tasking. You may often find yourself attempting to do multiple tasks yourself in order to save on costs. An important milestone of your journey is to hire an accountant.

But for something as complex as taxes, you may be spending too much time on it. For example, if you are spending 8 hours on the task, and your time is worth $150 per hour, the cost of doing it yourself is actually $1,200 and not $0 as per what you think. If you were to engage an expert such as an accountant to do the taxes for you, he or she probably spends half the time and at a cheaper cost. As a business owner, you will in turn have more time to create revenue for the company and leave the task to an expert.

In this case, we will explore further on situations you may need to engage an accountant.

Business plan

Accountants at this stage will be able to add tremendous value to your business. Their access to accounting software and their financial knowledge will benefit you from the start. It will potentially save you precious time and money.

Legal structure

Different forms of businesses will have varying degrees of legal liability in different countries. You should consider which is the best form of legal structure for your type of business. Under certain structures such as the sole proprietor, you may be able to offset some of your own living expenses against tax. But it will also mean that you are personally liable for the debts incurred by your business. If you fail to repay a creditor, they can come after your personal assets.

In this scenario, it is best to seek the advice of a professional before deciding which legal structure and form to take on for your business.

Company finances

This is obviously the most important reason why you need to hire an accountant. Cashflow is the lifeblood of any running business. Doing your own accounting can spiral out of control easily if you attempt to do it on your own. And if you are constantly feeling like you are losing control of your debtors and how much they owe you, it is best to hire an accountant to get your books back in order.

An accountant can also help by managing your payroll to measure key business metrics and parameters. Such as the cost of goods sold and employees’ payroll against total revenue. It will be better if your accountant is using a software that is integrated with your bank account for ease of producing timely reports such as Xero.

Tasks delegation

Being a business owner, you may constantly feel like you need to have control over every aspect of your business. The feeling of ‘no one knows your business better than you do’ can easily stress you out over time. A big part of successful business owners owes it to their ability to trust and delegate certain tasks to experts and professionals.

If I were in the business of food, I would not attempt to try to do a video or a photo shoot of my own products myself, but rather engage a media professional to do it for me. The same goes for managing your company finances. Choosing the right accountant and delegating your company’s finances to that professional, will ultimately free up more time, and you can focus on productive tasks such as generating more business for your company.

Attempting to do everything by yourself is not only inefficient but eventually, the time and energy spent on attempting to do everything by yourself may be fatal for your business. Learn to delegate tasks to the right professionals.