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, 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 grows, managing your financials, including all legal and compliance issues that come with it, may become more complicated than you can handle. Certainly, you can use an professional’s expertise.
Here are specific scenarios that serve as signs you need to hire an accountant:
Your knowledge about accounting is limited.
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.
You spend too long bookkeeping.
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.
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 experienced rapid growth.
It’s good that your business is booming, but note that this is accompanied by more customers, more employees, 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 rising but not your profit.
If you know you’ve been selling a lot but your profit seems to be hardly moving, an accountant can take a look at your financials and recommend adjustments, such as reducing a few overhead expenses, with the goal of expanding your profit margin.
You plan to branch 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 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.
You’re being audited.
If you ever receive notice of an impending audit, an accountant can take over from there and even 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 the same, and like lawyers and doctors, they too have specialties. A bit of research can make a big difference.