When You Need 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, all the tools you need are found on the Internet, and you don’t even need financial knowledge or experience to use them. 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. Certainly, you can use an professional’s expertise.
The following are specific scenarios that make it necessary to hire an accountant:
You have no knowledge about accounting.
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.
Bookkeeping takes up 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 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. 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.
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 have plans of buying or selling property, or selling your business.
Whether you’re thinking of selling your business partly or in whole, or you are looking to expand with an acquisition, an accountant can set up your transaction in a way that keeps your taxes low.
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.
If you’ve come to the decision that you need an accountant, your next step is to choose the right one. Accountants are not all created equal, and they specialize in certain practice areas just like doctors and lawyers. A little research goes a long way.