Signs You Need an Accountant
If you’re a small business owner managing your money yourself, you may be doing pretty successfully – as of now. After all, all the tools you need are found on the Internet, and you don’t even need financial knowledge or experience to use them. But as your business expands, you may have a hard time managing the complexities of your growing financials, not to mention the legal and compliance issues that come with it. Definitely, a professional can provide expert help.
Here are specific scenarios that serve as signs you need to hire an accountant:
Your knowledge about accounting is limited.
If you find financial statements and accounting terms too complicated, you can hardly create a report or you’re totally unfamiliar with the U.S. Tax Code, then without a doubt, you need an accountant – at least initially – to give you lessons on these.
Bookkeeping takes up your time.
Maybe you do have some knowledge of accounting, but it seems like your bookkeeping tasks are preventing you from managing your business effectively. Use an accountant so you can spend most of your time where it’s needed.
You have investors who want professional reports.
An accountant will be able to create high-detail, accurate reports that satisfy your investors and let you concentrate on running your business.
You experienced rapid business growth.
It’s good that your business is booming, but note that this is accompanied by more customers, more employees, more vendors, etc. Of course, that also comes with more paperwork and number crunching, and the reality that you just can’t manage all of these yourself in an effective manner.
Your revenue is rising but not your profit.
If you’ve been selling a lot but your profits don’t seem to be moving a lot, you can hire an accountant to point out overhead expenses that you can reasonably cut down on, or recommend other adjustments with the goal of increasing your profit margins.
You plan to branch out in another state.
If you have plans of expanding into another state, an accountant will help you comply with all the regional tax reporting requirements.
You plan to buy or sell property, or sell your business.
Whether you’re planning to grow your business through an acquisition or sell your business partly or entirely, an accountant can help reduce your taxes by structuring the transaction accordingly.
Uncle Sam is knocking on your door.
Should you find yourself in the messy process of an audit, an accountant can take over and represent you before the IRS.
If you have decided that you need an accountant, the next step is to find the right accountant who can best serve your needs. Not all accountants are the same, and like lawyers and doctors, they too have specialties. A bit of research can make a big difference.