Why Do You Need To Hire An Accountant?
As the owner of a small business, you may have managed your money successfully until now. In case you do not have sufficient financial experience or knowledge, you can seek the help of programs like QuickBooks for managing your money.
However, with the growth of your business and revenues, it becomes a difficult task to manage your financials, especially as you just do not have the knowledge or time for it. This is more important when avoiding compliance and legal issues. In such cases, a small accounting firm can be extremely useful for you.
Look for these nine signs in case you are not sure whether you need to hire an accountant:
1. You have no knowledge of accounting
You will have a hard time creating reports if financial statements confuse you, or if you are puzzled with regards to accounting terms, you initially require to hire an accountant to educate you in all financial matters. An accountant, rather than confusing you with terminology, can talk to you in straight terms, and educate you how you can manage your finances. Apart from this, you do not want to make mistakes or miss on key information early that could cost you in the end. An accountant can help you as well as your business start off on the right track.
2. You are ignorant about taxes
The Tax Code is complex. You will likely have to pay fines and penalties if you ignore to pay the appropriate taxes for your business or industry. The early advice of an accountant ensures that you can meet with all tax regulations. In addition, the accountant informs you of tax deductions and credits you can avail of, and compute your due taxes so that you do not end up paying short. Because he or she can file your taxes for you, the accountant makes the job easier.
3. Bookkeeping prevents you from doing other important tasks
Even if you have knowledge about taxes, bookkeeping can prevent you from carrying out jobs that could help your business soar or managing it effectively. Hiring an accountant lets you focus on building your team, and carry out other development activities like garnering new clients.
4. You Have Experienced Rapid Growth
You will need to serve more customers as your business expands. This mean taking on additional vendors, hiring more employees, and so forth. For this, you need additional paperwork and data crunching, which could soon become unmanageable.
5. Increase in revenue but not in profit
The accountant can look at your overhead costs objectively and point out where you can make adjustments or cut costs to increase your profit margins if you have an increase in sales, but are not observing an increase in profit.
6. Your Financiers Anticipate Professional Reports of Finance
Accountants can create accurate and detailed reports that your investors love and permit you to concentrate on tasks like business development. Additionally, you require to provide a polished business plan if you need funding or loan from an investor. The accountant can assist you with this too, making sure that you have thought of everything.
7. You Want to Expand to a Different State
An accountant can check whether you are compliant with payroll tax-reporting requirements, income, and regional sales, if you want to open a new outlet in a different state, and hire employees from that state.
8. You are to sell your business or thinking about purchasing or selling property
An accountant can help you walk through the process plus determine the transaction structure so that you do not have to pay overwhelming taxes when you want to purchase property, or sell off parts of your business, or sell off your entire business.
9. You are facing an audit
The accountant, by working with the IRS on your behalf or by preparing you to manage the audit, will guide you through this messy process, saving you precious time and money.