Growing small businesses often have a lot on their plate. As their business expands, so do the responsibilities of their employees, and things that seemed manageable initially can quickly grow out of control.
Accountancy is particularly vulnerable to this, with its complexity exponentially increasing the larger the business becomes. The impact of getting it wrong can be catastrophic, both in terms of understanding how the business is performing and in terms of potential compliance issues.
Here are some of reasons and signs it’s time to hire an accountant:
In the early stages of a business, it’s a lot easier to manage everything simply because everything is smaller. However, as the business grows, tasks become bigger too. It’s easy for a founder to get wrapped up in things that aren’t what made their business successful initially. Having a dedicated business accountant frees up those who started the business to focus on what made the business grow in the first place, whether that be their product development skills, selling ability or knowledge.
The creative energy that made someone want to start a business can drive a lot of initial growth, but as the business grows in size and complexity, it becomes more difficult to identify next steps. Knowing what resources are available and what areas of the business are performing well is valuable knowledge when deciding where a business should go next, and an accountant will be able to collect that data and supply that knowledge.
More secure finances
Growing businesses often get opportunities very suddenly and have to act fast in order to take them. This can lead to money being thrown at these opportunities without much thought given to the long-term implications of such spending. It may work in the short term to grow the business, but when tougher times come further down the line, will the business have enough reserves to survive? Having an accountant to watch over their finances helps businesses to make the best decision for the short, medium and long term.
Growing businesses need someone to keep each department, head of department and level of management accountable for their tasks whether that be financially or operationally. Financial stability is built on knowledge and real time information. Having a hands on accountant that cares about your business will keep your eye on the business and therefore more accountable to those plans you set, delivered by delegation and potentially funded by the secure finances of the foundations you have built ready to go forwards.
J Sweeney Accountants offer a range of accountancy services to suit your business. Not only bookkeeping, payroll and year-end-accounts services our bespoke accounting services make sure we can design a suite to fulfil your needs. Get in touch with us today on 01604 950034 or visit our contact us online.