As a small business owner, you do many business-related tasks yourself. However, a time will come when you must hand over key parts of your operation to others.
Recognizing and admitting you can’t do it all is challenging. Look at it as a good thing—your business is growing beyond what one person (you) can handle.
Every business owner has been there—treading water to keep their small business afloat. Sinking or swimming comes down to a few critical elements. One of those is who you hire to help you.
Accounting is often the first component you can hand over. Usually, an accounting expert can handle the financial part of your business better than you can.
You very well stand to benefit from letting a more knowledgeable and experienced accountant take the reins if:
- Your background isn’t in accounting or finance
- You can better grow your business by focusing your time and talents elsewhere
Below are some signs you could use an accountant’s services. Trade in the DIY accounting for a knowledgeable business CPA if you’re:
Terrified at Tax Time
Taxes can be complicated and confusing. The more your business grows, the more nuanced related tax laws can get. You don’t want to miss out on money-saving deductions, pay more than your fair share, or make costly mistakes with the IRS.
If your taxes terrify you, it’s time to call in a professional who’s more knowledgeable about tax laws. They can keep you out of hot water with government agencies and represent your best interests if the IRS audits you.
Too Busy with Bookkeeping
Accountants can help you with more than quarterly or yearly taxes.
Running a business requires you to wear many hats. It’s time to turn to an accounting professional when some of your responsibilities take up a disproportionate amount of time (especially if those tasks don’t drive business growth).
Often, a professional accountant can take care of your accounting responsibilities faster than you can. Compare paying yourself for the time it takes you to research, compare, and implement financial decisions to paying an expert accountant for the same.
You’d likely find that paying an accountant is the way to go. You gain time, accuracy, and profitable advice.
Obtaining Additional Funding
Business growth usually requires investors or loans.
Investors want clean and accurate financial documents. Your routine bookkeeping records aren’t enough to gain and retain investor trust.
Keeping up with financial reports can be difficult. An accountant can take on that burden for you, using their knowledge, skills, and technology to whip up the financial documentation you need in no time. They can suggest areas of improvement to make your business look more attractive.
Additionally, an accountant can review loan terms to ensure you’re getting a good deal and aren’t biting off more than you can chew.
Increasing Expenses but Not Profits
It’s easy to get stuck in a rut of spending as much as you make. Before you know it, you’re bringing in more customers and increasing sales but haven’t seen an equal profit increase. You don’t regularly pay yourself.
Furthermore, your business is running you instead of the other way around. You’re working longer and harder but not enjoying any benefits.
An accountant can audit your operations and expenses, helping you cut costs, save time and money, and improve your bottom line. They’ll practically pay for themselves with the money they help you save and earn.
Struggling With Miscellaneous Situations
A business journey can be just as topsy-turvey as a real-life one. You’ll experience stops, detours, and all kinds of unexpected situations that aren’t cut-and-dry. Some examples include bringing in or losing business partners, untangling an ex-spouse from your business finances during a divorce, or preparing to sell your company.
The bigger your business gets, the more complicated the accounting decisions tend to be. A knowledgeable accountant can help you make better sense of it all.
Who to Call
Now that you know some tale-tell signs of when to call, knowing who you can trust could be a whole different blog in and of itself. The main things to know about hiring an accountant are:
- You don’t have to hire a full-time in-house accountant. Hiring a business accounting firm might suit your situation and budget better.
- Consider your industry. Some industries, like construction and real estate, have particular accounting and taxation needs. Look for a professional accountant or accounting firm with experience in your field.
- Consider your location(s). Your accountant can work from anywhere in the world with today’s technology. But sometimes, having an accountant in your area you can meet with is most helpful. For example, Charlotte businesses might benefit from hiring Charlotte CPA firms because they are most familiar with local rules and regulations that can affect everything from shipping expenses to local taxes. Also, it’s nice to have the ability to visit your accounting professional face-to-face to exchange documents and receive advice.
Is It Time?
Accounting complications occur as your business grows. Those complications can be too tricky and time-consuming to do-it-yourself.
An accountant or accounting team can help you reduce your expenses and find ways to become more efficient and profitable. They may be able to answer questions you never even thought to ask.
Pay attention to the tell-tale signs that it’s time to bring an accountant on board. You don’t necessarily have to hire a full-time in-house accountant—an accounting firm might be the better option.
Don’t struggle with a DIY project best left to the pros. When the going gets tough, call on a knowledgeable CPA team that can help you achieve business success.
Infographic
As a small business owner, delegating tasks will eventually become essential. Accounting is often one of the first areas to outsource, as professional accountants can handle your finances more efficiently. Explore the infographic to discover signs that it might be time to hire one.
