Hiring an accountant can be a big step for businesses. This fact is most especially true to those still in their early stages. For some, it seems like an unnecessary expense that can push their financial numbers to red. In some cases, however, this fear is understandable.
Hence, it is essential for business owners like us to once in a while, ask ourselves. It is time for us to hand over the management of our books to an accountant. Here are some signs or tips on when you should get an accountant for your business:
You’re Too Busy To Monitor Some Parts of Your Business
A New York Enterprise poll found that small business owners spend at least 50 hours a week managing their operations. This number is far higher than the 33.8 hours employees spend working each week on average, according to the Bureau of Labor Statistics.
So, it shouldn’t be surprising if you find it hard balancing operating and recording transactions that happen in your business. An accountant can help you with this problem. Most importantly, hiring one will allow you to spend more time on more critical parts of your business.
There Is A Financial Threat In Your Area
The 2008 financial crisis shook businesses in the US, and small businesses were no exception to this. Some studies have found that they may have felt the crash worse than larger enterprises. One key reason for this tragedy is unsound financial planning in the part of small businesses.
A financial threat can very difficult to predict. Luckily, an accountant can help you plan your finances to protect your business if another crash were to occur. Well-trained accountants, like those working in AldarisCPA, can also see if there are other issues, besides a financial crash, that you should be worried about.
You Wish To Understand Your Business Deeper
Many small business owners make the mistake of thinking that they know the nature of their business inside and out. Unfortunately, underestimating the challenges or having a short sight can result in significant losses or missed opportunities.
Accountants are familiar in a very wide scope of businesses because of the specialized training they receive. Some accounting firms provide business consulting services that can help you understand how to manage the direction of your business.
You Plan On Opening Your Business To Investors
You can liken investors to a customer. They wish to know everything they can about a product, or in this case, a business before they open their checkbooks. Hence, most investors look for financial statements to get a bird’s eye view of the current financial standing of the company.
The inability to provide one is often a red flag for them. Thus, it makes it extremely hard for you to convince them to put money into your business. Accountants can, not only provide you with a financial statement but one that is understandable and compliant to international standards.
For Tax Filing Purposes
Depending on your state or taxing authority, you may be required to submit a financial statement along with your tax return. Taxing authorities often have formats and accounting standards that must be followed by tax filers. An accountant can make sure that your financial statement supports these policies to avoid encountering problems in the future.
You Plan To Expand Your Business
Expanding a business can be as hard and as critical as opening up a new business. One wrong move can result in you losing both your new and original business. If you wish to have a clear financial plan for your expansion, hiring an accountant will help you.
The numbers in your financial statements can help you determine parts of your business that need more attention. It can help you detect wastages and unnecessary expenses to maximize your profit. Lastly, it can also tell you if you’re growing too fast or too slow.
If you are still worried whether or not it’s the right move to hire an accountant, you can meet up with a consultant from Aldaris CPA to discuss your options. Booking an appointment is easy, click on this link, and you’re already halfway there!