Most of the founders begin with a vision of where they wish to stand outstanding in their company. While navigating the initial challenges of starting out, many business owners expect their goals to be an actual reality once they get towards growth and eventually a growing business.
The challenges of expanding areas, if certainly not more difficult, than the initial days of starting a business. As your business grows, it becomes more difficult to manage and manage. This is where professionals, as well as tax accountants, help ease the stress of managing the financial function, while also helping to inform your investment and strategic decision-making.
Scale-up businesses have established their idea in the beginning phase. Strategic direction is then shifted to channeling resources in order to achieve growth. This could be in any combination, or in of the following while making sure other aspects of the business aren’t affected:
• Market share
• Turnover
• Premises
• Employees
• Profitability
Moving Forward as a Small Business
Before we move on to the next step, we’d like to provide you with some idea about what is likely to see in the coming months.
Depending on how your company is currently set up there are a variety of routes you can choose to expand your business. For entrepreneurs (i.e. self-employed people) the most frequent choices people go are) switching to a sole proprietorship and the second option is) declaring an LLC (limited liability company).
Both have pros and pros and cons. From a financial perspective, some of the major differences between them include:
• Sole proprietorships require only minimal paperwork to create and keep. LLCs however are more stringent in their specifications.
• Entrepreneurs who operate solely as proprietorships can be exposed to liabilities from businesses that can expose their personal assets to risk. LLCs can reduce this risk by offering protection against commercial lawsuits, debts, and other risks.
• Sole proprietorships have to pay lower taxes than LLCs. The procedures involved in tax filing for sole proprietors are also less complicated. However, if an LLC expands in size (e.g. employs more workers) the tax savings may be higher than that of sole proprietorships.
There are other important variations too. The most important thing to remember is that each can be a viable option however the one that is right for your company will be contingent on many elements.
How an Accountant Can Help
As you can see, deciding the best path to take is already a difficult choice. The concepts that apply and the relevant laws can be complicated, particularly for a small business owner who has just been involved in the management of their own finances.
This is where the aid of a chartered accountant who is certified will be extremely beneficial. They’ll be able to help you understand the complex concepts involved, like asset protection and the taxation of entrepreneurs. With their help, you’ll be able to make better decisions since you’ll gain a greater understanding of the topic.
Furthermore, accounting professionals can assist to obtain and submit all necessary documents to grow your company. They’ll assist you in the process of establishing your LLC or sole proprietorship–based on your preference–and will continue to offer their services to meet all subsequent needs. Here are a few of the things that you will find accountants could benefit your small-scale company.
Analyze Financial Data
An accountant will look over your cash flow statements along with other financial records to find out where your company funds are going. They’ll use this information to inform you of the areas where you can improve your cash flow, and establish new budgets and updates to your workflow. When your company finances are in proper order and the business is in a good position, that means you will look forward to scale-up your business.
With greater financial clarity is greater success. With an accountant in place to help you analyze and refine accounting and financial reports, reporting your small-scale business just got much simpler. No matter what the situation, it’s easy. If you have a shareholder’s report or a budget to present to the executives, they can aid in achieving financial clarity for your company. Your accountant will help you analyze your financial data. They will also assist you in making financial decisions regarding your small-scale company with confidence.
Taxes
Taxes can be complex and costly. During tax time the accountant you work with should assist with tax filing and help you plan the best possible result for your small-scale company. A professional accountant will keep up-to-date on issues like tax credits, and incentives, as well as changes to tax laws or regulations. When you’re planning your tax structure in the early stages of your business plan or making preparations to file your tax returns. Your accountant can help reduce your tax burden and ensure you get the most tax refund you can get.
In Brief
Employing an accountant when all is said and done is the best option. Small business owners typically struggle to grow because they don’t have the skills and resources to make it happen initially.
When you engage an accountant to help share the burden, you offer your company the chance to expand while giving you the time and effort that you’ll need to concentrate more on the other areas of your business.
Johnny Thompson is a senior reporter for Generator Research in Los Angeles, reporting on technology, business, finances, and more. He previously worked as a reporter for the Wall Street Journal and got his start at newspapers in New York, Connecticut, and Massachusetts.
What is Leptin? Leptin is a hormone produced by the brain that controls metabolism and body weight. It is found in the brain and has been studied extensively since 1995. This hormone is an integral part of the metabolic system, and its synthesis is essential to a healthy body. The […]
