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, 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. Surely, a professional will be able to help.
Below are serious reasons 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 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. Use an accountant so you can spend most of your time where it’s needed.
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.
Your business is growing rapidly.
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. 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 on the rise 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 plan to expand into 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 intend to buy or sell property, or sell your business.
Whether you want to grow via an acquisition or sell your business in part or in whole, an accountant can help you determine how to best structure the transaction so that your taxes are be kept to a minimum.
Uncle Sam is knocking on your door.
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.
After deciding that you need an accountant, your next move is to find the right one. Not all accountants are created equal, and just like physicians and lawyers, they have specialties as well. A bit of research can make a big difference.