Reasons to Hire 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 grows bigger, you may have a harder time maintaining your growing financials, not to mention the accompanying legal and compliance issues. Certainly, you can use an professional’s expertise.
Here are specific scenarios that serve as signs you need to hire an accountant:
You have no knowledge about accounting.
If you are confused by financial statements and accounting terms, think reports are too complicated, or you’re unfamiliar with the U.S. Tax Code, then you certainly need an accountant – at least in the beginning – to teach you all of these things.
Bookkeeping consumes you’re a lot of your time.
Perhaps you do know something about accounting, but it feels like it’s taking you forever that you no loinger have enough tie to manage your business well. Hire an accountant so you can concentrate on what you do best, which is your business.
Your have investors expecting professional reports.
An accountant can provide reports with complete details and high accuracy, so that investors will be happy and you can focus on growing the business.
You experienced rapid business growth.
It’s good that you’re making more money, but remember that this also means serving more customers, expanding your staff, adding more vendors, 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.
Your revenue is rising but not your profit.
If you’ve had a boost in sales with a not-so-significant increase in profit, an accountant can take a look at your financials and recommend adjustments – for example, controlling certain overhead costs – so as to increase your profit margin.
You’re branching out in another state.
If expanding to another state is in the plan, an accountant can ensure that you remain 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.
Uncle Sam is knocking on your door.
If you ever receive notice of an impending audit, an accountant can take over from there and even represent you before the IRS.
After deciding that you need an accountant, your next move is to find the right one. Accountants are not all created equal, and they specialize in certain practice areas just like doctors and lawyers. A little homework can make a huge difference.