If you're a business owner, then chances are you always hire a chartered accountant or CA to manage your tax paperwork at the end of the year. However, there are other times when you might benefit from the services and expertise of chartered accountants, even before you begin your business. Note when you should consult with a CA and how they can benefit you.
1. When setting up a business
When you set up a business, you will need to choose between sole proprietorship, corporation, partnership, and the like. You may not understand all the details and implications of each type of business, so it's good to consult with a CA before you even file the paperwork. As an example, you might like the idea of adding the word "Inc." after your business name, but being incorporated will affect how you prepare your financial paperwork. A chartered accountant can ensure that you understand all the legal and tax requirements and ramifications of being a corporation versus a sole proprietorship, and the like.
2. When profits go up
If your business is making a healthy profit, you would do well to consult with a CA who can help you plan on how to use those profits wisely. This can mean creating a strategy for expanding your business into new markets, investing the profits in outside companies, or investing the profits in your own current business. This may include upgrading your company equipment and hiring more personnel. A CA will work with you and your own financial goals and goals for the business itself in order to make the most of those profits so they don't simply stagnate in a bank account.
3. When you need financing
If you need financing or loans for a business, a CA can help you in a few ways. One is to prepare the paperwork needed to present to your bank or lender. This will include profit and loss statements, projections, and the like. With the right paperwork and information presented to a lender, you're more likely to qualify for a loan or financing.
Another way that a CA can help you when you need financing or a loan is to ensure you understand how much financing you will need and how you will be able to repay such loans. They can work with you to create a new budget for your expansion or other plans, and for the repayment of your loans and lending.Share