Managing your small business’ finances initially may not be too difficult with the use of programs like Quickbooks. However, as your business grows, the amount of time and knowledge needed to successfully manage your business’ financial affairs will grow, too. This is when you need to consider adding a small business accountant to the list of professionals your business needs. Here are seven signs that the time has come to invest in a small business accountant.
1. Your Business Is Growing Rapidly
When your business takes off and really begins to grow, you may find that you don’t have the expertise needed to keep up. You’re hiring more employees, your customer base is increasing by leaps and bounds and more vendors are needed. Each of these things will require more number crunching and paperwork. For some people, the speedy growth of their business is simply too much to keep up with – at least on the financial end of things. A small business accountant can help.
2. You Don’t Know that Much About Accounting
If you’re confusing by accounting terms and financial statements and spreadsheets give you difficulties, you may benefit from a small business accountant’s knowledge. He or she can help you learn how to financially manage your business. Making mistakes or missing important information from the beginning could cause you significant problems down the road. Instead of being stuck in a quagmire of balance sheets, reports and other financial documents, let an accountant help you learn how to achieve the balance needed in business.
3. Taxes Mystify You
One of the most complicated areas of owning a business is taxes. The U.S. Tax Code is complex and can be frustrating. Mistakes can cost you significant penalties and fines. When a small business accountant handles your taxes, he or she can help you learn more about all the tax regulations that apply to you. Most importantly, though, are all of the deductions and tax credits that the accountant can help you learn more about. By using an accountant to file your taxes, you will experience fewer headaches and stress and when tax season rolls around.
4. You Want to Expand Your Business into a Different State
Each state has its own laws and regulations when it comes to opening a new location, hiring employees in another state and taxes, income and sales reporting in another state. An accountant can ensure you are compliant with those regulations and laws.
5. You Want to Sell or Buy Property
If you want to increase the size of your business through buying more property or you are interested in selling your business, an accountant can be a great help. He or she can walk through the process and show you how to structure the transaction so that you’re not hit with hefty taxes.
6. You Have Other Tasks That Need Your Attention
Bookkeeping tasks can take a great deal of time. When you have to focus on these tasks, you are pulled away from other tasks that need your attention, such as adding new customers, moving into new markets or dealing with performance and service issues. Let your small business accountant take on the financial aspects of your business, thereby clearing room for other important activities.
7. You’re Being Audited
Few words strike fear into the hearts of a small business owner like audit. A small business accountant can help you manage the audit or work with the Internal Revenue Service on your behalf. This will help save you a great deal of time and money, and they can provide guidance during this very stressful time.
A small business accountant can help make your life a bit easier with your business’ finances. From learning more about taxes to helping you clear up more time to handle other aspects your business, an accountant understands what you need to know to manage your business.