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When a startup is in its infancy, it’s normal—and perhaps essential—to cut costs wherever possible. There are certain expenditures, however, that will end up paying for themselves many times over, and hiring an accountant is one of them. Unless your company happens to be an accounting firm, you are probably unfamiliar with the financial side of a company, especially as the business grows and revenue increases. At what point should you hire an accountant, however, and what can you expect from one when you do?

Before Opening Up Shop

Retaining an accountant before you’ve made any sales might seem frivolous, but it could be in the best interests of the company. If you need capital, for example, potential investors will be more likely to add the startup to their portfolio if you can provide professional financial statements and projections. The same goes for lenders if you plan on applying for a small business loan. 

accountantWorking with an accounting firm from day one will also ensure that everything is in order when you make that first sale. You will already have a tax plan in place, for example, so there will be no surprises when the sales roll in and revenue increases. 

As the Business Grows

If you opt to forgo accounting help in the company’s earliest stages, it’s wise to seek professional guidance once you find yourself spending more than a couple of hours per week handling essential financial tasks. If the business is a one-man operation, it may be possible to do everything yourself. As soon as you hire employees or sales increase considerably, though, managing the financials is going to divert your focus from what matters most—the customer. Once it starts taking more than two to three hours per week, consider seeking assistance for everything from payroll to bank reconciliation. 

 

If your startup needs bookkeeping or payroll services, turn to Burch & Associates. Based in Lincoln, NE, this firm helps businesses throughout Lancaster County meet long-term financial goals by managing their day-to-day transactions. They work with clients across a broad range of industries, and their services include tax planning, payroll reporting, and consulting. To discuss your company's needs with an accountant on their team, fill out the contact form on their website or call (402) 483-4791. 

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