When Will You Need to Hire a Business Accountant?
As a business owner you may be able to make some financial decisions on your own without the advice or assistance of an accountant, but there are many times when their expertise can help you to make the right decision that will protect you and your business in the long run.
Note a few times beyond tax season when you may want to consider hiring a chartered accountant, and how they help you make the right decisions for your business no matter your industry.
1. When considering a merger or acquisition
Reviewing another company's financial statements may not be enough information to help you determine if a merger or acquisition is the right choice for you and your company. You need to think about the value of real property and how quickly it might depreciate in the future, and if there are any types of liens on that business and how that might affect its overall value.
An accountant may have expertise in these areas and may also be familiar with financial trends in certain industries so he or she can advise if a company will maintain profitability in future years. This is why it's best to consult with them when considering any type of merger or acquisition.
2. When preparing budgets
Because chartered accountants often know of trends in the financial industry, they may be able to advise you on how to prepare budgets for upcoming years. For example, they may see that petroleum prices are trending upwards, so in turn they may advise you to budget more for future transportation and freight costs. Certain raw goods and materials may be dropping in value, so you may be over-budgeting for production. By using their expertise when it comes to financial trends, you can prepare a more accurate and effective budget for your company.
3. Before going public with a company or selling
When you decide to take your company public and sell shares of stock, you need to ensure that they're valued accurately. The same is true if you are planning on selling your company; you need to have an accurate valuation before you can negotiate with buyers. This will help you to determine a price for stocks or for the company itself that you can expect and in turn, have a more accurate expectation of the working capital or profit you might receive from selling stock or the company itself. Chartered accountants like Scotts Chartered Accountants can help to determine the best value of both stocks and the company itself.
