Many people would agree that any type of business formation benefits from acquiring the services of an accountant. Others might wonder whether it is really necessary for a small sole-proprietor business, such as a home-based business or small coffee shop. The reality is that it can be even more important for a small business to hire an accountant than it is for a larger one. Here’s why:
- Wearing too many hats- A sole proprietor must usually wear many hats, meaning they are in charge of everything, including marketing, billing, receiving, meeting with lenders, helping customers, doing payroll, paying bills, and much more. You’ll grow your business more successfully if you leave the accounting work to a professional and focus instead on networking, marketing, and business operations.
- All decisions have a big impact- A mistake that costs several hundred dollars doesn’t have the impact on a large company that it does on a small one. If you make the wrong business decisions because your accounting work was full of accidental errors, you could fail before you even get going. An accountant will provide you with financial statements that are an accurate representation of your financial position so you can make sound decisions.
- Control labour costs- It can be expensive to add an employee when you are starting out just to handle your accounting work. It can be far more affordable to choose an accountant instead in many situations.
If your small business operated as a sole proprietor is in need of an accountant, reach out to us at Vohora LLP. We can customize your services to fit your needs, including your budget, so you can get your business off to a stronger start or have it pick up steam faster than you expected. We can also act in a business advisory capacity to help you grow your business. Call today to learn more.