Not so long ago, chartered accountants were viewed as a narrow profession concerned with preparing annual accounts, tax returns and audits. But today, these professionals provide a much wider scope of services that can truly benefit any business, big and small.
Start-up companies might think that it would be wiser to handle accounting tasks on their own so they can save money. But the truth is, there are other cost-related benefits of hiring a professional accountant. Take a look:
1. Professional Finance Services
Experienced chartered accountants can provide services that can help you make better finance decisions. They understand financials better, they can analyze the profitability of your investment options, they can give you advice on how to raise capital and even help you find an investor for your business.
2. Sound Business Plans
Anyone can create a business plan these days by simply researching the topic in Google. It’s fairly easy to do. But a professionally prepared business plan can keep you from making mistakes. It can give you a realistic assessment of your funding, direction and needs in the next few years. If you’re starting a company, you’ll need the advice and guidance of a chartered accountant in creating a detailed business plan. As an entrepreneur, you might overlook any potential problems if you try to do this on your own.
Besides, by using a reputable accounting firm, it will add credibility to your business plan, which will be helpful when seeking capital from banks and investors.
3. Logical Solutions
If your business is going through some financial difficulties, a chartered accountant can help you come up with a plan to turn things around. You can seek their advice on how to stop your business from spiraling downwards and possibly keep it from folding up.
4. Competitive Edge
You can get quality financial advice from someone whose expertise is in helping businesses grow and boost profits. They have knowledge in creating strategic business plans, creating financial statements and reports, capital requirements, valuation of company shares, cash flow projections and many others. With their guidance, you are better informed.
5. Audit Services
Chartered accountants also provide an expert perspective on control environments and financial statements so you can improve the performance of your company. They may offer financial reporting consulting, review engagements, audit of your financial statements and even due diligence services so you don’t have to do all these things yourself. The results will give you a clearer and more accurate picture of how you can improve the way you run your business.
There’s a cost to hiring a chartered accountant but they offer many benefits that outweigh any potential drawbacks. You get sound business advice, investment and financial guidance, and most importantly, you will know what needs to be done in order for your business to stay profitable. Choose a reputable accounting firm that have highly experienced chartered accountants so you can get the most bang for your buck.