2 Reasons Why Your Start-Up Needs Monthly Accounting Assistance
Are you a start-up juggling too many hats at once? Nowadays, running any type of business is tough, especially if you don’t have your finances in order. In fact, over the years, statistics have shown that many start-ups fail within the first three years, with poor financial management being the leading cause. Crucial to the survival of any business – without proper financial management, a new business can run the risk of falling into serious cash flow problems.
Still, there are many start-ups that believe that outsourcing their monthly accounting is just a waste of time and insist on doing their own books themselves. But what many don’t realise, until it’s too late, is that they could very well be doing their business more harm than good. If you’re on the fence – here are 2 reasons why your start-up needs monthly accounting assistance, right away.
#1 Accountants Make Business Growth Easier
From setting up shop, employing staff, marketing and reaching sales goals, to finances and accounting – you’re going to have more responsibilities than you can handle, and just because you’re an entrepreneur, it doesn’t make you a numbers person. Invaluable allies for any new businesses, no matter what type of business you’re running, accountants are necessary to help you grow your money. Offering a clearer perspective based on profit and loss reports, accountants help you look at the big picture and can tell you what services or products you should continue, decrease or discontinue. Keeping a firm eye on money coming in and money going out – accountants can pick-up and solve problems that you never even knew you had. No other business relationship has such potential to pay off than an accountant.
#2 Avoid Costly Penalties with Tax and SARS Compliance
Considered as the basic ingredient for the success of any business, every new start-up is confronted with the dreaded annoyance of filing tax returns each year. Not only must numbers be precise and accurate, but paperwork and formalities must also be set up correctly, otherwise you will find your business in the “hot seat” with SARS. With intentions to keep expenses low and help in avoiding problems with SARS, accountants assist with the completion of tax returns, VAT, UIF and PAYE, as well as prepare weekly or monthly payslips.
Staying up-to-date with all the latest tax legislation changes and acting quickly and efficiently with compliance guidance to their client’s specific financial requirements – when you hire an accountant to do your monthly accounting, you’re not only getting access to their years of financial experience, but you can also rest assured that your taxes are taken care of.