It's very common to find startup executives who don't think they need to hire an accountant. The most common explanations for this choice cite a lack of funding and a desire to keep expenses low. After all, qualified accountants aren't cheap. At the same time, good accounting professionals can help companies manage cash flow, make economical decisions, avoid penalties, and impress investors. Any startup founders should consider some of the benefits of bringing in accounting talent as early as possible.
Three Reasons Startups Should Hire an Accountant Right Away
Startup founders might consider hiring an accountant in light of how much money they can help save or raise and not how much money they will cost. In addition, it's possible to find ways to manage the cost of accounting professionals by starting out with contractors or temporary employees. At ICS, we can specialize in finding the best accounting talents for your company's specific requirements.
About 53 percent of successful new businesses do include an accountant in their startup crew. Another 13 percent add at least one of these professionals within six months, according to surveys. Consider some of the reasons that the majority of new companies do include accountants in their staff as early as possible:
- Accountants help impress investors and finance companies: Entrepreneurs understand the importance of making great pitches. They may already be good salespeople or put a priority on hiring sales talent to impress funding sources. On the other hand, finance companies and even many private investors are more interested in looking at the numbers than in a sales pitch that's better reserved for customers. In addition, accountants can help decide which sources of funding would be best for particular situations. Startups that employ accountants are likely to have better luck when they need funding, and they are also likely to make better choices about which funding to obtain and when to obtain it.
- Accountants provide essential assistance with cash flow: Startups may fail because of cash flow or accounting procedure problems more than for any other reason. An accounting professional can collect the right information that will help executives make better decisions about which efforts to pursue and which ones are only draining resources. An investment in a qualified accounting professional can help ensure that other investments return profits and not losses.
- Accountants keep startups out of trouble with the government: When many business professionals think about accountants, they think about taxes. This isn't wrong because successful businesses do better when they carefully plan for taxes and make decisions based upon those plans. In addition, qualified accountants can help companies produce reports and comply with other regulations. Having a professional who can help a business avoid penalties and bad press is worth the investment for many businesses.
Can Your Startup Afford Not to Hire an Accountant?
Your startup may require different kinds of accounting help during its startup and growth phases. Even if you can't afford to staff a full-time accounting department, you may be able to rely upon independent contractors. Very often, freelance accountants can benefit a new business by sharing their experiences with similar companies.
In addition, executives may decide that the freelancers are a very good fit for their business and offer them a permanent position later. This is one of the best ways to be certain that you're hiring accounting professionals who can help your business realize its vision and fit into your company culture. Of course, it's also easier to scale down when needs change if you hire freelancers.
Here at ICS, we will help you find the best accounting professionals for your new, growing, or mature company. We can help you find permanent employees, fill temporary positions, or even attract recruits who would be willing to work on a contract-to-hire basis. Just let us know a bit more about what you need, and we'll send you the best people.