Accounting all year round

Posted on: 12 December 2016

Many entrepreneurs who start small businesses may be unable to hire full-time accounting professionals from the launch date of their businesses. Such business owners may need to hire part-time help in order to ensure that the company doesn't run into accounting problems. This article discusses four key accounting functions that startup business owners should consider hiring professionals to execute on a part-time basis.

Setting Up the Accounting System

You need to hire an accounting professional to study your business. That examination will enable that professional to design an appropriate accounting system that can address the needs of your new business. It is also advisable to get an accounting professional to review your accounting system periodically (such as annually) in order to make the adjustments that are needed to cope with the changing needs of your business.

Bookkeeping

Bookkeeping refers to entering records of the daily financial transactions, such as purchases and sales, into the accounting system that was designed by a professional when you started your business. This task isn't very technical, so you can perform it in order to keep business costs low. As you get busier, hire a part-time professional to handle your bookkeeping needs so that your financial records capture every transaction that may affect your taxes and bottom-line.

Fraud Protection

It is also important for you to hire a professional to perform fraud protection checks for your new business. That professional will identify any loopholes that may be used by employees or external entities to cheat your young business. The fraud protection professional can then help you to set up systems that can avert those potential threats before they affect the financial health of your business.

Tax Preparation

You should desist from the temptation of preparing the tax returns of your new business on your own. This is because taxation laws are complex, and you may make mistakes that can cause you to incur penalties when those errors in your returns are detected. You could also miss some tax benefits that your business qualifies for. Hiring an accounting professional to prepare your tax returns ensures that any avoidable problems don't occur.

As already mentioned, hire part-time accounting professional to perform the roles above. You can then transition to having full-time employees for those roles as your business grows and necessitates you to hire full-time workers for those roles. Consult an accounting professional for advice about the best way to make a phased switch to full-time accounting employees.