Reasons 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, there are many tools online that you can use without any significant 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. Certainly, you can use an professional’s expertise.
Below are serious reasons to hire an accountant:
Your knowledge about accounting is limited.
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.
Bookkeeping consumes you’re a lot of your time.
Maybe you do have some knowledge of accounting, but it seems like your bookkeeping tasks are preventing you from managing your business effectively. Use an accountant so you can spend most of your time where it’s needed.
Investors want professional financial 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 you’re making more money, but remember that this also means serving more customers, expanding your staff, adding more vendors, etc. All of these entail more paperwork and number crunching, which means it’s plain unrealistic to expect yourself to do everything with good results.
Your revenue is on the rise 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 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 intend to buy or sell property, or sell 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 facing an IRS audit.
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. Not all accountants are the same, and like lawyers and doctors, they too have specialties. A little homework can make a huge difference.