Founding a startup might be challenging since you have to figure out how to take an idea and make it into a profitable business. The founder frequently assumed multiple responsibilities in the early phases, such as overseeing the company’s finances. 

One mistake might destroy your business if you’re not an expert at planning and handling your money. Because of this, your startup requires an experienced chartered accountant in Hyderabad to help you establish a solid financial foundation from the outset. But the advantages listed below will persuade you otherwise if you’re still unsure that hiring one is the best course of action. 

1. Arranging financial documentation 

Receipts, invoices, and bank checks are just a few papers that your accountant should keep track of. Your financial records will expand alongside your startup. Your accountant’s work includes keeping your financial records structured so that you can easily file an accurate report when tax preparation season arrives.

Your accountant can help you streamline your operations by installing accounting software. Your financial records will be readily available to you without needing to fill out a lot of paperwork. Having all of your documents saved in the cloud will also make it much simpler to keep up to date.

2. Controlling financial flow

Another crucial responsibility of your Certified Accountant and Statutory Auditor is managing the financial flow of your startup. They will be able to identify areas where you may reduce expenses and make wiser financial judgments because they have access to your financial records. 

Having an accountant can guarantee that your business maintains a good cash flow while still allowing it to develop, as managing cash flow is one of the most significant issues a startup can encounter.

3. Getting money and loans

It’s wise to start your company with enough cash on hand to assist with operating, expansion, and marketing expenses. 

Your accountant can help you raise money by preparing financial reports that will draw investors and help you bargain for bank loans. They can also help you with alternative financial possibilities, so when you make plans to get it, you’ll be aware of the advantages and disadvantages of each. 

Your accountant will also develop a sound repayment plan that enables you to budget and prevent debt for your startup, as you will ultimately need to return your loans.

4. Submitting taxes for businesses

Individual Tax Preparation season might not be your favorite time of the year, but your accountant will file and pay your taxes on time so your startup stays in line. They will also be able to tell you which tax breaks, credits, and exemptions your new business is eligible for so that you can pay less in taxes. 

Small businesses can get tax breaks through State R&D Credits, Retirement Plans, Work Opportunities, and Healthcare. Talk to your accountant to find out which ones you can apply for. 

Aside from tax breaks, your accounting professional will also know about any new tax laws. They will be able to let you know right away if there are any modifications that will affect your business. This way, you can avoid fees or fines.

5. Creating financial statements

It is still advisable to plan your budget for the following year, even if your accountant has a solid plan for handling your startup’s cash flow. To help you monitor the company’s financial health, your accountant will prepare a financial report based on the business’s records and statements. They can prepare these weekly, monthly, or annually, depending on your demands. 

From there, you may modify your plan to minimize costs, optimize tax benefits, and maintain a positive cash flow, all while adhering to tax regulations.

6. Enhancing the business plan

Whether your startup is ready for a new business plan or your current one needs some tweaking, your chartered accountant in Hyderabad can assist you in creating a fresh approach that centers on its expansion.

Bonus points if they have prior expertise in your field because they will be well-versed in launching and growing a successful firm. They’ll mainly concentrate on your company’s finances, including capital, costs, and financial projections. In addition to helping you avoid any potential financial problems, a solid plan should include a backup plan in case something unanticipated happens in the future.

The Bottom Line

To sum up, starting a business from the ground up is challenging, particularly for the entrepreneur. Managing several jobs and duties is often necessary to establish stability in your firm. Nonetheless, hiring an chartered accountant in Hyderabad  in the early phases of your business will assist you in laying a strong financial basis. They can help you with tax preparation, budgeting, and bookkeeping so that your business can expand steadily without running the risk of going bankrupt.