Signs You Need an Accountant
If you’re a small business owner who manages your own money yourself, you may be doing quite well – up until now. After all, there are many tools online that you can use without any significant financial knowledge or experience. 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. Surely, a professional will be able to help.
Here are specific scenarios that serve as signs you need to hire an accountant:
Your knowledge about accounting is limited.
If financial statements, accounting terms and the U.S. Tax Code confuse you or if you can hardly create reports, you definitely need an account – at least at the start – so you can be oriented on all of these things.
You spend too long bookkeeping.
Maybe you do know a decent bit about accounting, but managing your books is keeping you from managing your business well. Get an accountant so you can focus on what you do best – running your business.
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 great that your business is now more profitable, but keep in mind this also means more customers, a bigger staff, more suppliers, etc. Add to that more paperwork and number crunching, which means it’s plain illogical to think that you can still do everything effectively on your own.
Only your revenue is rising, not your profit.
If you know you’ve been selling a lot but your profit seems to be hardly moving, an accountant can take a look at your financials and recommend adjustments, such as reducing a few overhead expenses, with the goal of expanding your profit margin.
You plan to branch out in another state.
If you’re planning to expand your business into another state, an accountant can help keep you compliant with 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.
You’re being audited.
If you find yourself on the stressful path of an audit, an accountant can take care of everything, including working with the IRS on your behalf.
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 little homework can make a huge difference.