Most new businesses start with few funds, so saving is one of their most essential tools in the market. That's all right. But the CPA is one of those resources you can't do without before taking the first step or as the business grows. 

In addition to the fact that he is the person in charge of making the opening entries, which are necessary for any business to begin, there are several compelling reasons why your SME should hire him immediately. Want to know why you should hire a CPA for your business just click here.

Provides assistance in the development of the Business Plan

Every good business starts with a well-thought-out plan. And if you have made one, you should know that putting together the financial section is hard, and if it isn't right, it will be hard to get funding. In this order of ideas, the CPA is the person who can help you keep track of your business's finances. He can make accurate financial projections (usually for 5 years) and the income statement that goes with them. 

At the same time, they know how to correctly figure out the break-even point and the return on investment. They can even help you plan your operations, making them as cheap and profitable as possible.

Advises you in the constitution of the company

Setting up an SME or any other business involves more than just coming up with a good name, renting an office, and letting people in. Before doing so, you must, among other things, decide which type of company is best for you (Joint Stock Company, Public Limited Company, Limited Liability, EIRL, etc.), prepare minutes of incorporation, open the company books and accountants, and choose the tax regime that best fits the needs of your SME. 

An CPA is the best person to talk to about all of this and help you make decisions. This will help you get your first steps off on the right foot and keep you from having to pay extra in the future for things like fines, interest, and mistakes.

It is essential in the start-up

CPA's main job is to give the company useful, up-to-date, and accurate information that can be used to make financial, tax, and legal decisions. So, it's essential to hire an accountant right from the start, at least if you have clear goals for growth and don't want to run your business in a state of administrative uncertainty, which almost always causes businesses to fail or stop growing.

It frees you from time and obligations. 

In general, any business needs the active help of its founders in many operational and administrative areas. This is especially true when the business has few financial resources. But accounting is a different story. It usually takes a lot of time and a lot of specific knowledge. 

If you do the accounting for your small to medium-sized business (SME), you will lose too much time that you could use to do tasks that you are good at and look for new clients. Because of this, an accountant is needed right from the start. It helps you reduce the number of your tax obligations without falling into evasion or avoidance.

From their first year in business, all SMEs have to pay taxes, affecting their ability to make money and even their liquidity and financing costs. But avoiding them is against the law, and circumvention, which uses legal ways to save money, is seen as unethical and even rejected by some parts of society. 

But you can do whatever you want regarding thoughtful and proper tax planning. Tax planning is the planning done by the taxpayer to take advantage of the tax benefits written into the law. 

CPAs are experts at this, so they won't look for loopholes in the law or common tricks to avoid paying taxes. Instead, they will look for strictly legal ways to ensure that the value of the SMEs fiscal obligations has as little effect as possible on its cash flow at the end of the fiscal year.

Remember In the early stages of your business, hiring an outdoor accountant will save you money. But when the business is stable and starting to grow, hiring a professional who can be a full-time advisor in making important decisions for the business's future is essential.