Signs You Need an Accountant
If you’re a small business owner, you may have been managing your money pretty well – for now. Besides, you have all the tools you need on the Internet, and you won’t even need any 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.
The following are specific scenarios that make it necessary to hire an accountant:
Your knowledge about accounting is limited.
If you find financial statements and accounting terms too complicated, you can hardly create a report or you’re totally unfamiliar with the U.S. Tax Code, then without a doubt, you need an accountant – at least initially – to give you lessons on these.
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. Get an accountant so you can focus on what you do best – running your business.
You have investors who want 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 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 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 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 have decided that you need an accountant, the next step is to find the right accountant who can best serve your needs. Not all accountants are created equal, and just like physicians and lawyers, they have specialties as well. A little research goes a long way.