3 Signs Your Small Business Needs An Accountant

When you first started creating your small business, you probably tried to cut costs wherever you could. As the owner, you’ve worn more hats than you can count and have probably utilized free software and apps to perform all kinds of tasks—including accounting. At some point, you may start to wonder if it would make more sense to hire a professional accountant to help your small business. If that’s the case, then check out these threes signs that you may be ready to bring in a pro.

You Need More Time to Grow Your Business

Whether your business is becoming more successful or simply more complicated, you may be running out of time to sufficiently track your finances. You could potentially gain efficiencies by using a bookkeeper, and the time you save by having someone else do payroll or track your expenses could be used to grow your business further.

To go this route, you don’t need to create a full-time accounting position. Instead, you can hire a part-time employee or use an independent contractor who specializes in the exact services you need. If you can move your budget around and find the working capital to pay an accountant, you could quickly free up much needed time for other business endeavors (or your personal life).

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You’re Unsure About Requirements or Structuring

An accountant can help you make sure you have all of the right licenses for your locale, both city and state. He or she can also help you choose your business entity in order to structure your company in the most tax-efficient way. This analysis isn’t limited to when you’re first starting your business. It’s also good to review your entity type as you grow, especially if your revenue is significantly larger than it used to be, or if you have begun to hire employees.

You may also want to consider an accountant who can advise on any other legal matters, especially if they have experience within your specific industry. For example, if you sell products online, you may need a pro to help you stay up to date on exactly when you need to charge sales tax.

You’re Unsure About Requirements or Structuring

When considering an accountant, think about the responsibilities that come with being a certified public accountant (CPA). CPAs have both professional and ethical duties that can help make sure the correct due diligence is performed in relation to your business’s finances.

Tax liability is an important concern as your business grows, and a CPA can help ensure you’re correctly keeping up with your quarterly tax payments. If you’re paying too little, you could end up with an unfortunate surprise when you go to file taxes and could even incur an extensive underpayment penalty.

Don’t automatically assume you can’t afford an accountant for your business. By setting aside just a small amount of working capital for a contractor, you can keep your company’s financials healthy while simultaneously lifting an enormous burden off your own shoulders.