Figures show that 57 percent of small businesses don’t use an accountant, could that have something to do with the failure rate of businesses in the US?
The fact is, certain types of businesses need an accountant more than others. Here, we’ve compiled a list of the top 10 that need these services most:
1. Startups. You’ve got a great idea, but need angel investors or venture capital to get it off the ground. People may know of your skill in the industry, but not your skills as a manager and administrator. Your investors want a qualified professional keeping an eye on spending. The Huffington Post reported “For every success story that you read, there are 100 who have failed.”
2. Businesses with employees. Before you roll your eyes, know that the Small Business Administration reports 80 percent of small businesses in America have no employees. That leaves about 5.8 million businesses with employees, meaning tax preparation, tax planning, bookkeeping, reporting and more. They need an accountant.
3. When Financial Statements are Required. Banks and other lenders will require financial statements when extending or renewing loans and lines of credit. They want to see an honest picture of the business’ finances prepared by a third party.