When You Need the Services of a Chartered Accountant

Posted on: 24 August 2015

Not every accounting or financial transaction of your business needs to be handled by a chartered accountant, but you never want to avoid hiring such a professional when they are needed. This can mean ensuring that your tax paperwork is handled properly and that you always understand the finances of your business. Note a few times when you need to consider hiring a chartered accountant for your business or the plans you have for starting a business.

1. When you need to apply for loans or financing

When applying for loans or financing for a startup business, a lender will want to see more than just your plans for the business. They will need to understand your pricing structure, your expected revenue, and many other details that will enable them to make a good decision about lending you startup funds. A chartered accountant can ensure that you have your financial paperwork in order and create a report that is meant specifically for applying for such funds, and, in turn, you may be more likely to get the loans or financing you need.

2. When you need to declare bankruptcy

If a business is in trouble financially, it's good to work with a chartered accountant to note if you need to actually declare bankruptcy or if the business will go into liquidation or insolvency. They may be able to structure a payment plan with lenders to keep you out of this step, or at least ensure you know your options when your company owes large sums of money. They can also typically act as a receiver or trustee throughout the process.

3. When upgrading your accounting systems and software

You may only think to consult with an information specialist when you want to upgrade your software for accounting and financing, but remember that an IT specialist can only tell you what a computer program does; they cannot tell you what features you need for your company in particular. Your chartered accountant will understand the type of accounting that is used for your company and, in turn, which program will serve you best. 

In turn, you may be able to use the program more effectively to order inventory on time, pay vendors, and understand the overall financial shape of your company. Upgraded software may also make it easier for your chartered accountant to find the information they need about your company quickly, so they can prepare reports at a moment's notice or get your tax paperwork done faster.

For more information, contact a local accounting company like Scotts Chartered Accountants