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Many think that the marginal difference between startups and established businesses is significant. However, in reality, there is not much difference except that startups are still in the early stages, and established businesses have been around for a while. The giveaway of the similarities that exist between startups and established businesses is the core professionals involved in a business. 

These professionals constitute the core of every business, including the lawyer, human resources staff, area managers, and accountants. One may wonder, “accountants?” but “startups are barely beginning, and so do not have many accounts to manage; thus, why hire an accountant?”. 

An Accountant is as essential to a business as any of the other professionals mentioned above. This article will explain how in detail, among other details.

Why is an Accountant needed in a Business?

The answer to this question is stated in the primary reason for establishing a business. The primary purpose of most businesses is to make profits while satisfying a need by producing products or providing services. 

Businesses that started without an accountant soon discover the need for an accountant if they can survive with time. Hence, an accountant is essential for a business’s survival.

It is near impossible for a business owner to supervise and manage a business effectively while managing and organizing its accounts. The demand of managing a business and its account is a hassle; thus, the business will surely suffer in some way. Plus, an accountant has due knowledge of managing the business numbers so it can thrive effectively.

When to Hire an Accountant in a Business?

From the information above, we can say an accountant is crucial at every stage of a business. Still for emphasis purpose, here is an outline of the different stages of business that needs an accountant:

1. Startups: When looking at the monetary aspect involved in starting a business, we see that the business needs to be established on a tax structure with fixed accounts under specific tax laws that influence tax returns and deductions. Hiring small business accountants helps establish the business under favorable conditions for the business to thrive and grow.
2. Increase staffing: As the business expands, its labor force expands likewise; thus, hiring a competent accountant or accounting firm helps with formulating a working business plan, budgeting and forecasting, tax auditing, and analyzing what loans are in the business’s interest and more.
3. When buying a business: An Accountant is essential before and after buying a business. The accountant must investigate and research the business you intend to buy to know if it is a safe and profitable investment. The accountant is also involved during negotiations and after purchase in structuring the business’s accounts.
4. When the business becomes big: “The higher you go, the more obstacles you have to overcome” in business and accounting, it is, “the bigger you grow, the more complicated accounts (business financial numbers) become.” Making accountants indispensable to the business at this stage.

Conclusion

Do not be pressured to hire an accountant because the article outlined that an accountant or an small business accounting firm is needed at every stage of the business. Remember, the duties of an accountant in a business are satisfied if the accountant is competent; thus, always prioritize experience and competence when hiring an accountant.