Reasons to Hire an AccountantJuanita Oliver
Having a small business or big can get tricky when you do not have an accountant to manage your business’s financial expenses. Even though you have taken accounting courses during your studies, and you would think that you can manage it and also become the founder of your business, it would save a lot more compared to hiring a separate accountant, but this is more than that. There will come one point, where you would have to pay extra taxes for your business’s income, and you probably would question and by then, is already busy and caught with so many other things.
One of many reasons to hire an accountant because an accountant can give you advice about your company’s legal structure. Every business has different legal structures, there are many factors that determine it as well. Some companies might be called limited companies, there are also limited liability partnerships or corporations, others might know these guys as sole traders or proprietors. It is always to be mindful when it comes to choosing what is best for you. For instance, you might be a sole trader or sole proprietor and doing your business, work for a self-employed basis, and invoicing under your own name. Normally, if this is the case, you can balance some of your living expenses against tax.
Other than that, your finances will be helped by your accountant. If you do your accounting on your own, even small businesses can get tricky. Normally an accountant will help you to keep track, especially when you lost track of how much people owe you and your expenses, etc. Furthermore, there will also come one point where you would like to measure the key business metrics. For example like the salaries ratio and other employee payments to total revenue. What accountant will do, is they will manage your payroll and create a graph where you can see over time, the ratio changes.
Last but not least, in case you are audited, this is the most important part to hire an accountant. It is not common or normal if your company will get audited, because there are not many small businesses and so little govern’s auditors. But if it actually happening to you, it can get really expensive and stressful. Not to forget, time-consuming. At this point, if you do not have an accountant, it is best to hire one. Apart from they can give advice on working methods during the auditing process, they can also help to ensure that you will not violate any tax laws afterward because surely the governments will start to observe.
I could list you more reasons to hire an accountant, even if your company is quite new and small. It is never too early to have one accountant. But there is also a lot of accounting company Malaysia, you can find, to hire the best ones. Maybe you can also get suggestions or recommendations from other people. Nevertheless, before your company gets into a financial crisis, it is safer to get one.