Managing money is an integral part of being a small business owner. However, there are times when hiring an accountant becomes a necessity more than just an option.
Still not sure if hiring an accountant is the best move? Here are some telltale signs you need one:
1. You’re not (that) good with accounting
Experienced accounting advisers in London, for example, often tell their clients this: You don’t need to be a financial expert to run a business successfully. However, if you’re not adept at accounting, it’s an obvious sign that you need to hire an accountant. An accountant can help you become familiar with the terminology, learn how to create reports, and make financial statements without mistake-at least for the first few months. If you don’t, you can risk losing money if you make mistakes in your books or taxes.
2. It can take time from other important tasks
Managing books, filing taxes, and creating financial statements can be time-consuming tasks. If these tasks eat up the time that is meant to be spent on other important things, hiring an accountant can help you focus on them while they do the bookkeeping for you.
3. Your business has taken off rapidly
If your business has grown exponentially in the past few months, that’s great. But as your business grows, so do other things like payroll, workforce, stocks, and many more–all of which requiring additional number crunching and financial planning.
4. Profit isn’t increasing with revenue
Is your revenue increasing, but your profit isn’t budging? Hire an accountant to look over your books and see which areas can be adjusted to help improve your profits.
5. Taxes confuse you
Don’t know anything about taxes? Save yourself from the stress and hire an accountant to help you file your tax reports. They can help you ensure that your business has full compliance with tax regulations, as well as guide you through deductions or tax credits that you can take. Most importantly, they can save you a lot of time and effort during tax season because they can file your taxes on your behalf.
6. You’re losing money
Is your business losing money, but you’re not sure where the leak is coming from? An accountant can analyze your business objectively and tell you exactly what’s causing your losses.
7. It’s time to expand
Are you planning to open a new branch, move to a bigger location, or distribute in another state? Hire an accountant to stay compliant with all the laws involving income, regional sales, tax reporting, and other pertinent financial factors that come with expansion. Similarly, they can help you plan expenses that come with opening a new store, taking on new suppliers, hiring new people, etc.
Hiring an accountant can yield a lot of benefits for you and your business, so don’t think too much of the expenses associated with working with one. If you see one or more of these signs in yourself and your business, then it’s probably time to look into getting an accountant as soon as possible.