Business First Family Business, Accounting, Finance, Investing, Marketing And Management
Entrepreneurs often fret about hiring their first employee. It’s a big step after all. Bringing someone into your company-of-one to judge and assess everything you’ve done so far is a big undertaking and can come with a lot of risks. Many small business owners don’t know what skills and talents they need for a successful growth strategy. To take their business to the next level, many business owners try to grow too quickly and end up biting off more than they can chew. That’s why, we believe, your first employee should be an accountant. Accountants can help you make sense of the dollars and cents, even when you don’t have any revenue to count yet.
Accountants Keep Your Bottom Line In Mind
When you hire an accountant as your first employee, you are setting yourself and your business up for success. Because your accountant is going to keep your money in check and help you make decisions about when it is wise (and not-so-wise) to spend money, you can rest easy at night knowing you aren’t burning through your operating budget before you get up and running for real. Even if you have been in business for a while and are not ready to take things to the next step, you’ll want someone in your corner who can keep an eye on the bottom line. While you are busy growing your dreams, your accountant will make sure your bank account is accurately lined to make those dreams come true. And if you have no money, your accountant will remind of that fact and help you find ways to save the little money you have.
Accountants Can Help Negotiate Your Financial Situation
Ironically, many people who find themselves with large sums of money don’t know how to manage those large sums of money. If you’ve just come off a fundraising stint and have some money in your pocket, you’ll want someone who can help to negotiate what that looks like. Burning the business budget months after getting funds is not ideal and your accountant will help keep you on track. Plus, accountants are really good at understanding where money is coming from and going to and can help you stay the course when you feel the urge to blow a lot of money for something that might not carry a high return on your investment.
Accountants Can Help You Plan Your Spending
Whether you see a 5-year plan or a 50-year plan for your business, your accountant can help you plan how to spend your money. If you are thinking about bringing on other employees, your accountant can look after all of the payroll (even their own!) and make sure that your government taxes and remittances are sent off to their respective departments. There is a lot that goes on behind the scenes of an accounting role and if you get the right accountant in that first all-important position in your company, you won’t need to worry about the money (as long as it keeps coming in) ever again. Your accountant will provide updates and reports, insight and advice on how to make the most of your business investments and long-term goals.
Accountants Can Help Navigate Issues Related to Your Finances
Every business that is established is subject to government auditing and if you find yourself in this precarious predicament, your accountant will become your best friend. Accountants can ensure that information is up to date and that you are aware of all the financial information related to your company. Plus, if you hire a CPA to be your first employee, they can help with negotiation strategies for government inquiries if they come calling. There’s no reason to not hire an accountant.
Outsource Or In-House?
When it comes to working with an accountant, many small business owners may be tempted to outsource this role, but if you can afford it, having your own small business accountant will help your company go further, faster. When you hire an accountant outside of your organization, you are working with someone who is dividing their time between your needs and the needs of any number of clients that would argue their work is more important than yours. So if you can swing it, bring in an in-house accountant and allow them to do what they do best: help you put procedures in place to maximize your money and ensure the longevity of your business now and in the future.
