Why Small Businesses Require Accountants.

If you are thinking of starting a small business, one of the most critical personnel you require is an accountant. The essay below gives reasons why small business owners need accounting services.  

During business development. 

The first step of starting up a business is developing a business plan. An accountant will assist you to in the financial analysis segment. He or she will evaluate your figures to determine if the business is viable. Moreover, an experienced accountant can assess the business data of similar establishments to help you project growth. An accountant will also advise you on how to keep your business records and how to manage cash once you open shop. If there are any government regulations regarding taxation, your accountant will ensure that you comply with them.

During business growth. 

Once you begin business operations, you require an accountant to perform the following functions; 

• Preparation of financial statements such as the balance sheet and profit and loss statements.
• Funds management. The accountant will evaluate business spending to ensure profitability. He or she can also help you cut expenditure or halt some operations during tough periods to keep the business afloat.
• The accountant will help file taxes to the government. He or she can also help you save on tax by reclaiming taxes.
• Your accountant can help you acquire critical business software such as point of sale systems and accounting software to help streamline business operations. 

During business expansion and maturity. 

As your business grows, your accountant continues to play a vital role. Some roles of the accountant include; 

• He or she will help in making forecasts. By evaluating business data, the accountant can identify peak and off-peak seasons.
• The accountant will also help you in calculating risk. For instance, if you intend to take up a loan to start a new production line, he or she will analyse the risks involves against the reward to determine the viability of such measures.
• If you intend to expand your business through mergers or partnerships, an accountant can help you understand the financial implications of such actions.
• The accountant can also assist you in conducting an internal audit. An internal audit helps evaluate whether the business operations are in line with the business objectives. It aims at ensuring efficiency in business operations.
• The accountant can help in conducting forensic operations to uncover fraud, embezzlement and determine the accuracy of financial data. 

Accountants are critical in the business growth cycle. They are a vital component of business development, business growth, business expansion and maturity.