A capable accounting department is very essential for any business; be it a startup or an established firm. However, like we have discussed in our previous blogs, startups usually prefer to outsource their accounts to accounting firms for various reasons
So how do you determine if it is the appropriate suggestions for you to partner with a financial accounting firm? Our handcrafted tips will help you to ascertain the right time for choosing a firm to suit your needs!
- Money Flow:
When your startup is in the very primary stage there won’t be a lot of money changing hands. You will be able to keep a track of all the transactions on your own as there will be limited exchange. But as soon as you take your first big investment, that is when “should have an accountant” becomes “must have an accountant”! Bigger investments increase the flow of money into a business, be it in the form of expansion, increase in employees or building new infrastructure!
- Increase in complexities:
Once the investments start flowing in, the nature of your business and its operations change! There are more complex procedures involved that may have varied financial transactions. For you, it becomes a difficult task to keep track of your work and the accounts. Thus an accounting firm takes the load off your hand
Accounting requires special set of skills as it includes summarizing the financial position of your company. An accounting firm deals with various aspects like bookkeeping, filing returns, taking care of the financial statements, etc. So when your business grows, it becomes practically impossible to manage the accounts without proper expertise due to the complexities involved!
When your firm is in the initial stage and does not fit in the slabs of taxation, there is no question of filing any returns! But once the firm starts growing and the annual turnover climbs, filing returns becomes mandatory according to the law and compliances. An accounting firm is specialized to handle this complex procedure! Thus, partnering with an accounting firm when the company is rapidly progressing is an ideal move!
- Strategy and Planning:
When the firm is small, it doesn’t require much brainstorming in developing strategies. But as progress happens, an accounting firm helps you formulate strategies based on the financial condition of the firm. You get a complete idea about the profit-loss situation depending on which you can take various decisions!
- Money Flow:
A financial accounting firm is an essential and integral part of a company which becomes its continuous partner! If you are still in doubt about when should you search for a partner, Boston finance is just the place to get all your doubts cleared! Get in touch today!