Why Do Startups Need to Hire a Good Accountant?

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Business is intricately linked with accounting and finances. Start a business with the right financial planning and you are on the road. Keep an accountant by your side and you progress while avoiding pitfalls and roadblocks. This and other reasons make it mandatory for startups to have a strong accounting section with a good accountant in charge.

Business and taxation
Anyone who operates a business knows that taxes are an inseparable part of running an enterprise. You are liable to pay income tax and you are liable to pay GST. Accounts need to be in order and returns must be prepared periodically. You cannot have approximations here and everything must be finely calculated. This is where a good trained accountant with knowledge of taxation proves immensely valuable. Accountants who have undergone GST certification course will prove helpful in managing GST related matters. You do not have to worry about the taxation part.

Salaries and deductions
While an accountant may not be directly responsible for calculations of salaries and deductions you will find that he does have a role to play. Startups may not have a full-fledged HR department and the accountant usually handles salary calculations and deductions. If PF, ESI or any other such myriad labour-related laws are applicable then it necessitates the maintenance of records as well as periodic submissions. You can trust accountants to handle this function.

Itemized accounting
Business owners must know in precise detail about expenses under various heads, income, cash flow and their financial status at any given time. Hire a good accountant and you can expect up to date records with data that will tell you about the financial health of your company. With such data, you can make timely decisions and also present such data to your investors. If you have taken loans you may be required to furnish accounting details to satisfy such institutions or investors that you are making progress. Startups invariably face cash flow problems and some companies simply fold up due to lack of cash. Outstanding may not be collected in time while expenses mount making it difficult to carry out day to day operations as well as pay salaries and loan instalments. Your accountant keeps you updated with minutest details that you, on your own, will not be able to identify.

Time-saving
As an entrepreneur, you will be busy with technical matters and with sales. If you try to handle accounting you will not be able to do it properly and will end up spending time without getting results. Your other work suffers. You may end up working too hard and will barely have time to spare for your personal matters or family. Hire an accountant and, at least, you do not have to waste time on accounting which is the lifeblood of business.

Hiring an expert and trained accountant may mean that you are handing over part control to someone else who knows your business secrets on the financial side. However, look at the positive side and you will see immense benefits. Keep your accounts in order with the help of an accountant and you can grow. Munimji trains accountants to help startups on their road to success.

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Why Do Startups Need to Hire a Good Accountant?

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