When You Need to Hire an Accountant
If you’re a small business owner managing your money yourself, you may be doing pretty successfully – as of 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.
The following are specific scenarios that make it necessary to hire an accountant:
Your knowledge about accounting is limited.
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 takes up your time.
Maybe you do know a decent bit about accounting, but managing your books is keeping you from managing your business well. Use an accountant so you can spend most of your time where it’s needed.
Your have investors expecting 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.
Your business is growing rapidly.
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’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 plan to expand into 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.
Should you find yourself in the messy process of an audit, an accountant can take over and represent you before the IRS.
If you’ve come to the decision that you need an accountant, your next step is to choose the right one. Not all accountants are the same, and like lawyers and doctors, they too have specialties. A bit of research can make a big difference.