Reasons to Hire an Accountant
If you’re a small business owner, you may have been managing your money pretty well – for 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:
You have no knowledge about accounting.
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.
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. Hire an accountant so you can concentrate on what you do best, which is your business.
You have investors who want professional reports.
An accountant can create reports that will keep your investors happy while you remain focused on managing your business.
Your business experienced rapid 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.
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’re branching out in another state.
If you have plans of expanding into another state, an accountant will help you comply with all the 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.
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. Accountants are not all created equal, and they specialize in certain practice areas just like doctors and lawyers. A little homework can make a huge difference.