How to Invest With Wisdom

For your small business to succeed, you need to know about more than simply how to sell your products or services. You must be able to manage all of the associated financial business paperwork which your company will generate. Staying on top of your finances can sometimes take up far more time than most people have to spare. While it is essential that you have a basic understanding of how much money is coming into your business and what is happening to it most people would benefit from the advice and assistance of professional accountants to look after the more complex financial arrangements.

Having qualified accountants you can call on for advice can be a great benefit for your small business but if you make the wrong choice you could find yourself heading for disaster. Before settling for an accountant it is always best to interview three or four potential candidates and find out whether they are a good fit for your business. Here are three questions that will help you to make your choice.

Are they qualified and insured?

If you are entrusting someone with your business finances you must be sure that they know what they are doing and that they are properly regulated and insured. Talk to your prospective accountants and check that they have the appropriate qualifications and that they carry suitable insurance to protect you against any losses you incur due to bad advice you receive from them.

Find out what they can do for you

Many small business owners make the mistake of believing accountants can only take care of tax compliance and the annual accounts. The accountant should be familiar with small businesses and able to find ways for you to access grants and raise capital. They should be able to talk to you about angel investment or crowdfunding, as well as suggesting tax relief schemes. Don't settle for accountants who want to take your money each month just for looking at your books. You need to find an accountant who can help your business move forward and grow.

Ask how much they cost and when they will bill you

There is no standard structure for accountants fees. Some will bill you by the hour while others will work for a monthly or yearly fee. It is vital that you discuss their fee structure at an early stage so you know exactly what the costs will be to your business. If you don't ask the question then you could easily find that your accountant becomes an unexpected drain on your finances when you can least afford it.