Is it more important to hire a lawyer or accountant?
As a small business, is it more important to get the advice of a lawyer or accountant. There are various questions, such as our choice of legal entity and making sure we are taking the right steps with our business, that seem to be both legal and accounting of nature. I would prefer not to hire two experts right now. Which type of expert would be more appropriate at an early stage?
Hiring an accountant is more important than hiring a lawyer for a small business.
There are two big reasons for that:
1.) You need an accountant on a weekly, bi-weekly and monthly basis. You don't need a lawyer every day.
2.) An accountant would keep a tab on your company's financial ins and outs. On the other hand, a lawyer might make company policies that would comply with local law.
In short, hiring an accountant is important than hiring a lawyer. Eventually, you would need a lawyer.
Why a Small Business Lawyer Is as Important as an Accountant:
Every new business needs two very talented professionals right from the start. The first is an accountant. The reasons are pretty obvious. But many don’t see the importance of a small business lawyer as well. So they put off hiring one until a legal problem appears.
A Small Business Lawyer Keeps You out of Trouble:
As mentioned before, most people choose to put off hiring a lawyer until it’s too late.
They Have Connections and Other Clients like You:
The right lawyer for you has experience in your industry. A small business lawyer is a professional when he or she knows the ins and outs of your industry.
They Communicate Well and Are Trustworthy:
You should always follow your instincts when hiring an attorney. With a professional small business lawyer, you should always speak freely.
They Offer Security and Protection:
You need to protect your business’s logo, name, or brand through trademark and copyright protection. And it will be better for an experienced small business lawyer to take care of it.
How to Determine When to Hire an Attorney versus an Accountant:
Here is a basic test, to help you decide when to hire an attorney versus an accountant:
-Does the objective involve a specific financial amount or involve the IRS? Use your accountant.
-Does the objective involve a third-party (other than the IRS)? Use your attorney.
Here’s another test for you: If your attorney or your accountant disagrees with the above-mentioned test, it may be time to switch accountants or attorneys.
Project Manager from Essay4Students.com
No doubt, a lawyer should be the first choice of every startup at the early stage of business. You can deal with accounting part later on by collecting all the financial documents, maybe by hiring an in-house accountant or accounting outsourcing.
As a smart Entrepreneur, you really need to know that in order to make your business grow, first of all, it has to be safe. You need to have a lawyer and at the same time an accountant for your bookkeeping.
Wish you the best, Colette Hamilton!
Both lawyers and accountants have their own importance as they are specialized in their particular field and trained in it. As accountant had not undergone the training of legal analysis or law and they do not have a license too. Accountant work in the terms of financial and paperwork includes taxation and how to maximize your tax deduction. Similarly the lawyer is the one who had trained in the art of legal analysis or law. So we cannot compare them or substitute them in each others place. As they are specialized in their field. For early-stage financial planning, it is a must that you hire an accountant, but you will also require a lawyer for legal advice on starting your business. To find a business lawyer, visit http://www.tarabay-gemayel.com.
In the compliance world, lawyers and accountants are strange bedfellows. Sometimes they need each other, and sometimes they do not. Each has advantages and disadvantages. Working together, you get both.
Lawyers and accountants have another significant difference – lawyers have to advise company witnesses of their Upjohn rights, which may cause the witness to seek their own counsel. Accountants do not have to advise company witnesses of their Upjohn rights and can question the witness. Of course, the witness can seek counsel anytime even if not advised of the right to do so.
With pluses and minuses and pros and cons, there is a good solution, which many companies follow. Some do not and it is hard to understand why. A company can maximize benefits and minimize downsides by retaining both, and doing so through the attorney. What do I mean? The company should initially retain the attorney, and then have the attorney retain the accounting firm to provide counsel with forensic accounting services that are needed for counsel to advise the company on compliance issues. This is the proper structure for a project and must be carried out by having counsel attend every interview or interaction with company officers and employees relating to the specific matter.
Working together, attorneys and accountants can bring about optimal solutions. Companies that work with one to the exclusion of the other only increase their risks for enforcement or compliance breakdowns.
The accountant. He or she has the skill and training to help you with everything you need to get a business up and running.
Is it more important to have a left shoe, or a right one?
I know when you're starting out you want to keep yourself from getting overwhelmed, but don't mortgage your future. Accountants and lawyers perform very different functions and have very different domains of knowledge. Asking an accountant about legal matters is like asking a cop about supreme court decisions - sure, there may be some conversational/superficial knowledge, but no real understanding under the covers.
Now, you may be able to get by without a lawyer for longer period of time than an accountant, but I always advise my clients to pick a lawyer's brain early on. You'll be surprised how many lawyers are open to one-off (and often cheap) informal meetings to run you through the minefield of getting started. You don't need anyone on retainer, but unless you've got a lot of business experience, you'll quickly find that there are aspects of your corporate bylaws, ownership structure, etc. that you wish you had advice for.
Lawyer always comes first. Accountant is helping to sort out your finances. Lawyer keeps you out of jail!