Search in Videos, Members, Events, Audio Files, Photos and Blogs Search
Simon  Hopes

mikedavid|United States

My Blog

<1  293031  189>

7 Signs You Need an Accountant For Your Business

May 20, 2019

     (0 Rating)

In the last five years, over 25 million Americans have started new businesses. Many bootstrap their ventures without outsourcing until they need to.

When is the right time to outsource and hire an accountant?

There are some clear signs that you need a professional accountant on the books. As entrepreneur and business owners, it’s crucial you’re aware of these signs. Your business could suffer otherwise.

Falling behind on taxes? No time to organize the books? Keep reading for seven reasons you need an accountant.

1. Your Business is Growing

Rapid growth periods are exciting times for business owners. You experience an influx of customers, sales, and paperwork.

As you hustle to stay on top of your evolving business, your books need more attention than ever. Hiring a professional is the best move you could make.

One of the first tasks business owners should outsource is accounting. Outsourced accounting services remove the burden from your shoulders. They also free up your time.

Don’t stress yourself out with trying to do it all. Focus on what you’re great at, like running the business. Leave the numbers and invoices to the professional.

2. You’re Getting Audited

Are all your files in order? Is everything accurate and accounted for? If not, getting audited could be a lot more stressful than it needs to be.

The government doesn’t audit small businesses often, but they do sometimes. It’s your job to be prepared in case it happens to you.

An accountant can ensure your business gets through the auditing process unfazed. They keep all your documents organized and confirm the information is correct.

What if the auditor does find mistakes? Accountants can deal with any mistakes and save you time and money. Complicated audits can suck your time and money away unless you have an accountant on hand.

3. Taxes Aren’t Your Forte

Taxes for small businesses are much more complicated than doing your personal taxes. There’s legal and financial jargon you need to understand. Without understanding what you’re doing, you could make detrimental mistakes.

Don’t waste your time trying to learn how to do small business accounting. You have better things to spend your time on, like hiring and creating new products.

Professional accountants complete a 4-year degree in accounting. Then, they study and take further classes to specialize their expertise in. It ends by passing an intense exam and getting certified.

Let your accountant handle what they’re trained to do.

4. You’re Planning to Buy or Sell

Selling part of your business can be super profitable and beneficial to you. But, structuring the transaction is less enjoyable.

Accountants can help you structure the deal in the most beneficial way for you. Maybe you want to sell the entire business and use your exit plan. An accountant can help you do that successfully, too.

Do you want to open new locations in other states? If so, it’s important to be compliant with the tax reporting laws in those states. Accountants can give you accurate information and guidance so all your locations are compliant.

At some point, you may also consider acquiring another business. If so, you need an accountant to look over the proposed transaction and compare it to your finances.

5. You Don’t Have Experience with Accounting

Some business owners will attempt to do their own accounting for as long as they can. Others have never done taxes before, even for themselves.

There is too much at stake to try doing taxes yourself for the first time with your business.

Not to mention if you have investors, bank loans, and other obligations. Investors expect to see detailed reports of your businesses’ earnings and losses. An accountant can produce this report accurately and regularly.

It’s a similar case if you need to get a loan from the bank. Banks expect to see a detailed business plan that displays all your numbers. Accountants can help ensure your plan is accurate, thus improving your chance of getting the loan.

6. You’re Not Seeing a Profit Increase

It’s normal for new businesses to wait at least four years before seeing any profits. If you’re past that point and still not making money, you need an accountant.

An accountant can assess your expenses and earnings to see where the discrepancy is. If your overhead costs are higher than they need to be, you could lose profits.

Some businesses notice that their revenue is increasing, but their profits aren’t. In some cases, this is okay, especially when you’re reinvesting every penny back into development. It’s a problem when you aren’t reinvesting but you’re still losing money.

Having a budget is incredibly important for new businesses. Yours might not be tight enough to see optimal returns. Have an accountant look over your budget and guide you on how to adjust it.

7. Managing Your Books is Too Time Consuming

Accounting isn’t a quick and easy job. It’s much more than simply payroll and budgeting. Here are some of the other key tasks involved in accounting:

  • Ensure documents comply with state regulations
  • Make sure statements are accurate
  • Compile tax forms and file them
  • Maintain accounting records in the database
  • Recommend best practices to the business owner

To do this efficiently, you need someone working full-time on your business. As the business owner, you don’t have time to be that person.

Do You Need an Accountant?

Personal finances and businesses finances are similar yet different. Both require you to comply with state laws and be accurate with your numbers. Business owners especially feel the pressure to file their taxes accurately and efficiently.

Have you ever wondered if you need an accountant?

If you relate to any of the points above, you should look into hiring an accountant. Then, watch these videos on improving your finances. God is in every facet of our lives, event business!