Professional Accountant for Startup companies: The 7 benefits you should know about

 

Most of the owners of startup companies believe that hiring a professional accountant is not necessary. They usually believe this, because of lack of funds and due to desire to minimize expenditure. Although, hiring a professional accountant is expensive, but accountant gives a lot of benefits to the business. He/she helps to provide quality financial information to enhance informed decision making, effectively and efficiently manage cash flow and others. So, this article explains the benefits of hiring an accountant for startup companies.

The benefits of professional accountant to startup companies

Forecast financial estimates

For the startups to get funds from investors or lenders, they need to provide forecast financial estimates to submit to them. The accountant helps the business to prepare and present a business plan to the lenders or investors. The business plan will contain the projected financial statements, background information about the company, market plan, strategic and growth plan, and others. The plan is the first thing to connect the business to the investors and lenders, therefore it is important for startups. So, it explains the reliability of the project.

Profitability

The accountant also helps to determine the profitability of a business by preparing and analyzing financial statements. Through the help of accounting, the startups can determine the growth of the business. So, it helps to know whether the business is making profit or loss, the percentage of expenses to sales revenue. It helps to know whether assets are generating enough profit or not. All the financial information helps the stakeholders to make a rational decision about the business.

Expenses budget

Another vital function of an accountant is the preparation of a budget for startup companies. The accountant helps the startups to budget for different functions of the business. So, doing this helps to prevent or minimize wastage of the company’s resources on non-essential aspects of the business. However, the budget can be capital or revenue expenditure.

Calculation and filing of tax

The professional accountant also helps startups to calculate and file their tax returns to the tax authority at the appropriate time. He/she also helps startups to minimize tax liability through proper tax planning.

Manage cash flow

More so, a professional accountant helps a startup business to manage its cash inflows and outflows to ensure that the company maintains an efficient liquidity position. Failure to manage cash flow properly will affect the attainment of the business’s success.

Professional insight

The professional accountant also helps startups with professional advice, experience, expertise, and education when setting up accounting operations for the company.

Time savings

Additionally, the Accountant helps the business owners or executives to concentrate their efforts and time on other important aspects of the business after delegating the accounting services to him/her. So, they can focus their time on marketing strategies, production, human resources, and others to attain the corporate objectives of the business.

Can your startup avoid hiring a professional accountant?

No, if your startup cannot afford to hire a full-time professional accountant, you can hire other accounting services for your business. So, you can outsource your accounting function to an accounting firm or freelance accountant. By doing this, you will enjoy the benefits of hiring a professional accountant for your business. Because the accounting role is very important to the startup and growth of your business.

Conclusion

The benefits of professional accountants in Nigeria are very vital to the financial success of every startup company. So, every startup requires the services of a professional accountant. This is because he/she will enhance the achievement of the business goals and objectives. So, you don’t need to look at the cost of hiring a professional accountant only. You need to look at the benefits attach to it. However, Accounting software like QuickBooks Online, Sage, Wave, Xero, and others will assist Accountant in performing their services.

5 Main Financial Statements of a Business Organization

Understanding the Difference Between Gross Profit and Net Profit

6 Simple Steps to Improve the Profitability of a Small Business

The Similarities and Differences Between Shares and Debentures

Subscribe to our newsletter!

5 thoughts on “Professional Accountant for Startup companies: The 7 benefits you should know about

  1. Pingback: The relationships and links between 3 key financial statements -
  2. Pingback: 7 Important Accounting Skills for Professional Accountants -
  3. Pingback: Traditional and online accounting: What are the differences? -
  4. Hi to every one, the contents present at this web site are actually remarkable for people experience, well, keep up the
    nice work fellows.

Leave a Reply

Your email address will not be published.